Regulatory changes hint at what might be in store in a second term
Quite a lot has been written, including by The Economist, on what Donald Trump’s plans are for government, should he be elected again in 2024. Though he is the sitting president, rather less has been said of President Joe Biden’s plans for another four years. One reason is that the Senate looks like an uphill battle for Democrats next year, so if Mr Biden were to win he would probably have to rely on executive orders and the regulatory state to push America’s green transition forward.
Look closely and you can see some of the groundwork being done for this eventuality. On December 2nd the Environmental Protection Agency (EPA) announced new, tougher regulations on methane emissions. The rule was announced at COP28 in Dubai and positions America with 154 other governments who pledge to reduce methane emissions by at least 30% by 2030. The new rule will require oil and natural-gas operators to greatly reduce emissions. The EPA says this new rule should reduce projected emissions in the sector over the next 15 years by nearly 80%.
Underpinning the change is a new calculation of the social cost of carbon. This purports to price the damage from one extra ton of CO2. This number matters a lot. A low dollar amount makes it hard to justify strict new rules. A high one means such restrictions could pass cost-benefit tests and make it past a legal challenge.
2023-12-14 09:06:18
Post from www.economist.com
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