Scottsdale, AZ
“A Window of Opportunity: Changing Climate Policy”
(Invitation only)
Steve Rose, Electric Power Research Institute
Ross McKitrick, University of Guelph, Ontario
Jerry Taylor, Niskanen Center
Gernot Wagner, Harvard University
Given the sudden shift in the political tectonic plates, there may be a window of opportunity to refashion major aspects of the electricity system. The confluence of a possible major Federal tax reform, expanded spending on infrastructure investment, and redirection of national climate policy creates a new environment. Tax reform and national infrastructure spending could make the revenue raising aspects of a carbon tax part of the solution. And a carbon tax could be a central part of a major change in approach to accounting for the costs of energy externalities, allowing efficient approaches that replace other more intrusive and expensive approaches to environmental protection. Part of this discussion will accentuate the debate on the social cost of carbon in this context. The subject is both controversial and important. How do we define and estimate the social cost of carbon? What do we know about the key inputs and uncertainties? How do we translate policy analysis into a workable system for a carbon tax? How would a national carbon tax interact with state policies for cleaner energy? What current or planned cleaner energy policies would or should change if there is a carbon tax? What role will a carbon tax play in our energy future?