Carbon taxes are a critical regulatory mechanism for reducing greenhouse gas emissions. A carbon tax directly sets a price on emissions, either as an output tax on producers of fossil fuels (coal, petroleum products, and natural gas) or a tax on the purchase of fossil fuels. Such a tax makes the carbon price certain, but the total emissions that ultimately result from the … [Read more...] about Resolving the Inherent Uncertainty of Carbon Taxes
In Federal Energy Regulatory Commission v. Electric Power Supply Ass’n, the Supreme Court upheld FERC's authority over "demand response"—bids of reductions in electricity consumption into wholesale markets—under the Federal Power Act, and held that FERC’s decision to compensate demand response providers at the same rate as electric power generators was neither arbitrary nor … [Read more...] about FERC v. EPSA Symposium
By David Baake Since the New Deal era, the Supreme Court has interpreted the Spending Clause to permit Congress to use conditional grants to encourage state governments to take action that Congress could not require them to take. In National Federation of Independent Business v. Sebelius, the Supreme Court unexpectedly restricted this power, holding for the first time ever … [Read more...] about Federalism in the Air: Is the Clean Air Act’s “My Way or No Highway” Provision Constitutional After NFIB v. Sebelius?