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Resumen de Some inconvenient truths about climate change policy: : The distributional impacts of transportation policies

Stepehen P. Holland, Jonathan E. Hughes, Christopher R. Knittel, Nathan C. Parker

  • Climate policy has favored costly measures that implicitly or explicitly subsidize low carbon fuels. We simulate four transportation sector policies: cap and trade (CAT), ethanol subsidies, a renewable fuel standard (RFS), and a low carbon fuel standard. Our simulations confirm that alternatives to CAT are 2.5 to 4 times more costly but are amenable to adoption due to right-skewed distributions of gains. We analyze voting on the Waxman-Markey (WM) CAT bill. Conditional on a district's CAT gains, a district's RFS gains are negatively correlated with the likelihood of voting for WM. Our analysis supports campaign contributions as a partial mechanism


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