MAE 124/ESYS 103:  Week 8 Assignment

 Power for America:  Choosing provisions for an energy bill


Energy policy gets a lot of headlines, but at the moment there appears to be no consensus among American lawmakers about how best to direct energy policy in the US.  In the last two years, proposed policies have run the gamut:
Just about the only thing that has not been proposed since President Obama took office is a straight carbon tax, but that does not mean that no one is thinking about a carbon tax. 

If your goal is merely to reduce greenhouse gas emissions, what should you do?  Is the no regulation concept of the Energy Tax Prevention Act sensible?  (Maybe if efficiency pays for itself, regulation only gets in the way.)  Or can a little nudge through a renewable portfolio standard, a carbon tax, or a cap and trade policy make a difference?   If the plan is to nudge the US economy, then what would you implement?

Before writing a response to this assignment, please read Paul Krugman's detailed tutorial-style article entitled Building a Green Economy from the New York Times last year.  (Feel free to do much more extensive reading if you like.)

Then write a brief (250 words or less) statement.  First explain the distinctions between a carbon tax, a cap and trade policy, and a renewable portfolio standard.  Then justify your own preferred strategy for reducing greenhouse gas emissions.