2. Environment

3. Is Environment Getting Better or Worse? Improvements in local and national air and water quality in US and other developed countries. But other problems worsening: over fishing, deforestation, global warming, etc.

4. What is the difference? “Tragedy of the Commons”

5. In economic terms Pollution, species extinction, environmental problems, generally an “externality” costs not born by producers Role of govt.: correct the destructive economic incentives

6. Global Warming CO2 and other gasses form “greenhouse effect”

7. Consequences -raising sea levels, causing droughts and storms, and disrupting ecosystems, crop productivity, ocean acidification -self-sustaining processes: -melting polar ice-caps cool less and reflect less light/heat -thawing permafrost releases more g.h. gasses

8. water shortage

9. Kyoto 1997 Kyoto Protocols, formally in effect since 2004 -U.S. and other developed countries were to reduce g.h. gasses below 1990 levels by 2012 1997-’01 Senate fails to ratify the treaty 2001 Bush dismisses Kyoto Protocols cites insufficient evidence, too great costs Developing countries, like China and India exempted

10. California jumps in “pavley law” 30% reduction of car GHG by 2016 Detroit and Bush attack in court

11. Clean Air and Bush Admin 1970 Clean Air Act requires clean technology for new power plants 1977 “New Source Review” -requires existing plants to phase in pollution control improvements over time, when plants are expanded 1999 Clinton admin files suits against non- compliant plants 2001 Bush admin dismisses suits 2002 Bush admin undoes “New Source Review” replaces with scheme based on tradable “pollution allowances”

12. Efficiency: The Rise and Fall of CAFÉ Corporate Average Fuel Economy--passed by Congress in 1975, after “oil crisis” Required manufacturers to double car fuel efficiency to 27 mpg saved billions of gallons of gas Decreasing fuel efficiency since ‘87 -“Light truck loophole” -Static CAFÉ standards

13. Should We Raise CAFÉ standards? Yes But, this is not the best solution-- “rebound effects:” -fuel efficiency creates incentive to drive more -more expensive fuel efficient cars creates incentive to hold on to older, less efficient and more polluting, cars longer Better answer: increase gas tax -generates revenue, incentives to drive less, manufacturers to innovate, compact development, etc. But politically unpopular/dangerous

14. Other landmark legislation Clean Water Act 1972 EPA working with state and local bodies set limits on effluents and wetlands destruction Bush admin—Congress can only regulate “navigable waterways” Endangered Species Act 1973 Forbids hunting and habitat destruction for “endangered species” Pombo bill—compensating landowners for restricted development