Professor Franz Litz, executive director of Pace Energy and Climate Center, provided his perspective on the federal government’s most recent steps to address climate change. He is quoted in an article in Energy Risk that tells of efforts to use the regulatory authority of the Environmental Protection Agency (EPA) to establish rules that would limit the levels of carbon emissions from existing power plants. Such an approach would allow the Obama administration to bypass Congress.
“If the EPA sets the standard at a certain level of stringency, then states will be very strongly encouraged to adopt a flexible approach, because they’ll want to achieve that standard as cheaply as possible,” Professor Litz is quotes as saying. “Cap-and-trade allows reductions to come from wherever they are most cheaply found, so it’s generally seen as the most cost-effective way to achieve deeper reductions.”
The full article, which appears on risk.net, a site that covers news about financial risk management, can be read here.