Policy Analysis: Valuation of Ecosystem Services in the Southern Appalachian Mountains.

This study estimates the economic value of an increase in ecosystem services attributable to the reduced acidification expected from more stringent air pollution policy. By integrating a detailed biogeochemical model that projects future ecological recovery with economic methods that measure preferences for specific ecological improvements, we estimate the economic value of ecological benefits from new air pollution policies in the Southern Appalachian ecosystem. Our results indicate that these policies generate aggregate benefits of about $3.7 billion, or about $16 per year per household in the region. The study provides currently missing information about the ecological benefits from air pollution policies that is needed to evaluate such policies comprehensively. More broadly, the study also illustrates how integrated biogeochemical and economic assessments of multidimensional ecosystems can evaluate the relative benefits of different policy options that vary by scale and across ecosystem attributes.

Emissions and energy impacts of the Inflation Reduction Act.

Economy-wide emissions drop 43 to 48% below 2005 levels by 2035 with accelerated clean energy deployment.

What have we learnt from the European Union's Emissions Trading System?

The EU Emissions Trading System (ETS) demonstrated the ability to design and launch a large-scale trading system in a short period of time. The path from initial reticence about emissions trading to implementation of the world's largest program is an important history. Three issues play a large role in the evaluation of the program to date and its on-going development: allocation plans, cost uncertainty, and leakage of emissions to abroad. Decisions in Phase I and II (2005-2012) were responsive to questions of political feasibility and implementation, but some of these decisions including allocation in particular will be substantially revised in Phase III (2013-2020).

Short-run allocation of emissions allowances and long-term goals for climate policy.

We use economic analysis to evaluate grandfathering, auctioning, and benchmarking approaches for allocation of emissions allowances and then discuss practical experience from European and American schemes. In principle, auctions are superior from the viewpoints of efficiency, fairness, transparency, and simplicity. In practice, auctions have been opposed by important sectors of industry, which argue that carbon pricing without compensation would harm international competitiveness. In the European Union's Emissions Trading System, this concern led to grandfathering that is updated at various intervals. Unfortunately, updating gives industry an incentive to change behavior to influence future allocation. Furthermore, the wealth transferred to incumbent firms can be significantly larger than the extra costs incurred, leading to windfall profits. Meanwhile, potential auction revenues are not available to reduce other taxes. By circumscribing free allocation, benchmarking can target competitiveness concerns, incur less wealth transfer, and provide a strategy consistent with transitioning to auctions in the long run.

Energy policy and coastal water quality: An integrated energy, air and water quality modeling approach.

Federal policy changes in the management of carbon emissions from power plants offer a potent real-world example for examining air-land-water interactions and their implications for coastal water quality. We integrate models of energy (Integrated Planning Model (IPM)), air quality (Community Multiscale Air Quality (CMAQ) and water quality (SPAtially Referenced Regression On Watershed attributes (SPARROW)) to investigate the potential water quality impacts of policy-driven changes in total nitrogen deposition in watersheds draining to US coastal areas. We estimate the combined effects of three recently proposed energy policy scenarios, population growth, and climate change. We decompose the combined effects into the roles of the individual components on the supply of riverine nitrogen for the entire US and eight coastal regions. We find that population growth is the most important driver of changes in coastal nitrogen flux. Energy policies play a minor role in offsetting the negative effects of population growth, although the effect varies by energy policy and region. The greatest population and policy effects are projected for the Gulf of Mexico. Given limited reductions in nitrogen emissions and deposition associated with energy policies, the net effect of policy and population changes is an increase in total nitrogen flux to all estuaries relative to the 2010 baseline. While population growth increases flux, and energy policies decrease flux in all regions, climate change can either increase or decrease flux depending on the region. That is because the relatively large individual effects of temperature and precipitation on watershed nitrogen processes work in opposing directions. The net result of the offsetting nature of individual climate processes varies in both magnitude and direction by coastal region. Further research is needed to sort out individual temperature and precipitation effects in different regions.

Expansion of US wood pellet industry points to positive trends but the need for continued monitoring.

Implementation of the European Union Renewable Energy Directive has triggered exponential growth in trading of pelletized wood fibers. Over 18 million tons of wood pellets were traded by EU member countries in 2018 of which a third were imported from the US. Concerns exist about negative impacts on US forests but systematic assessments are currently lacking. We assessed variability in fundamental attributes for timberland structure and carbon stocks within 123 procurement landscapes of wood pellet mills derived from over 38 thousand forest inventory plots in the eastern US from 2005 to 2017. We found more carbon stocks in live trees, but a fewer number of standing-dead trees, associated with the annual operation of large-scale wood pellet mills. In the US coastal southeast-where US pellet exports to the EU originate-there were fewer live and growing-stock trees and less carbon in soils with every year of milling operation than in the rest of the eastern US-which supplies the domestic market. Greater overlap of mills' procurement areas exhibited discernible increments across selected carbon stocks. These trends likely reflect more intensive land management practices. Localized forest impacts associated with the wood pellet industry should continue to be monitored.

Air emissions of ammonia and methane from livestock operations: valuation and policy options.

The animal husbandry industry is a major emitter of ammonia (NH3), which is a precursor of fine particulate matter (PM2.5)--arguably, the number-one environment-related public health threat facing the nation. The industry is also a major emitter of methane (CH4), which is an important greenhouse gas (GHG). We present an integrated process model of the engineering economics of technologies to reduce NH3 and CH4 emissions at dairy operations in California. Three policy options are explored: PM offset credits for NH3 control, GHG offset credits for CH4 control, and expanded net metering policies to provide revenue for the sale of electricity generated from captured methane (CH4) gas. Individually these policies vary substantially in the economic incentives they provide for farm operators to reduce emissions. We report on initial steps to fully develop the integrated process model that will provide guidance for policy-makers.

Correction: An Analysis of Costs and Health Co-Benefits for a U.S. Power Plant Carbon Standard.

[This corrects the article DOI: 10.1371/journal.pone.0156308.].

An Analysis of Costs and Health Co-Benefits for a U.S. Power Plant Carbon Standard.

Reducing carbon dioxide (CO2) emissions from power plants can have important "co-benefits" for public health by reducing emissions of air pollutants. Here, we examine the costs and health co-benefits, in monetary terms, for a policy that resembles the U.S. Environmental Protection Agency's Clean Power Plan. We then examine the spatial distribution of the co-benefits and costs, and the implications of a range of cost assumptions in the implementation year of 2020. Nationwide, the total health co-benefits were $29 billion 2010 USD (95% CI: $2.3 to $68 billion), and net co-benefits under our central cost case were $12 billion (95% CI: -$15 billion to $51 billion). Net co-benefits for this case in the implementation year were positive in 10 of the 14 regions studied. The results for our central case suggest that all but one region should experience positive net benefits within 5 years after implementation.

The benefits and costs of reducing emissions from the electricity sector.

Recent federal policy proposals to reduce emissions of sulfur dioxide (SO(2)), nitrogen oxides (NO(x)), and mercury from the US electricity sector promise important improvements in air quality and reductions in acid deposition. The cost of achieving these reductions depends on the form and stringency of the regulation. In this research, we analyze the economic benefits and costs of the US Environmental Protection Agency's (EPA's) Clean Air Interstate Rule (CAIR) as characterized in the supplemental rule proposed in June 2004, and the Clean Air Mercury Rule (CAMR) as proposed in February 2004. The assessment integrates a model of the electricity sector, two models of atmospheric transport of air pollutants, and a model of environmental and public health endpoints affected by pollution. We model explicitly the emissions of SO(2), NO(x), mercury and carbon dioxide (CO(2)) and the effects of changes in emissions of SO(2) and NO(x) on environmental and public health. The manner in which mercury emissions are regulated will have important implications not only for the cost of the regulation, but also for emission levels for SO(2) and NO(x) and where those emissions are located. We find the economic benefits of CAIR and CAMR are far greater than the costs. Recent estimates of benefits of reductions in mercury and acidification indicate that our model captures the lion's share of quantifiable benefits. We also find that the EPA would have been justified on economic grounds in pursuing additional SO(2) emissions reductions beyond the requirements of CAIR.