Could California Climate-Change Rules Raise Gas Price Enough To Backfire?

Details

Publish Date:
May 19, 2017
Author(s):
  • Voelcker, John
Source:
Green Car Reports
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Summary

California has by far the most aggressive climate-change policies in the nation, and the state is a global leader in plans to reduce carbon-dioxide emissions.

It’s also the world’s eighth-largest economy, with a growing population, soaring economic output, and a resolutely progressive legislature.

Now Danny Cullenward, an energy economist at Stanford University, suggests that the combination of all those forces could collide to produce much higher gasoline prices.

Cullenward and his colleague, Stanford law professor Michael Wara, released a proposal now embodied in a bill before the legislature.

That’s because Cullenward and Wara acknowledge that the rising prices of emission permits will add significantly to the price of gasoline within the state.

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