Governance

While stating that climate change is a “huge problem” in need of innovative solutions, Louisiana Congressman Garret Graves (R-6th district) made the case for bridging political divides by aligning environmental sustainability with economic sustainability during a Virtual Forum (view recording here) on Thursday (March 10). The event was hosted by the Harvard Project on Climate Agreements (HPCA) and moderated by Robert Stavins, HPCA Director and A.J. Meyer Professor of Energy and Economic Development. 

The US Supreme Court on January 13 blocked President Joe Biden’s attempt to mandate that businesses must require their employees to be vaccinated against the coronavirus or else wear masks and be tested regularly.  This “emergency standard” was to have been applied by the federal Occupational Safety and Health Administration, carrying out its responsibility under long-standing legislation to protect workers facing serious danger in the workplace.

Are the US and other advanced countries experiencing stagflation?  Stagflation is the unfortunate combination of high inflation with low growth in output and employment that characterized the mid-1970s.  Are we back in that decade?

The Biden Administration is showing a renewed commitment to addressing climate change, but there is still a long road ahead for the development of substantive domestic policies to reduce greenhouse-gas emissions. That was one of the messages delivered on Friday (April 30) during a Virtual Forum hosted by the Harvard Project on Climate Agreements.

It has been a year since the US and the world went into recession.  Because of its origins in the sudden pandemic, it was possible to reliably discern the advent of the recession before it was reflected in any of the standard economic statistics, which is rare.  (I hope it shocks no one to learn that economists can’t normally predict recessions.)

By the end of the second quarter of 2020, US GDP had fallen 11 %. This record plunge took the US economy from a level that is estimated to have been 1.0% above potential output at the end of 2019, to a level 10 % below potential in mid-2020.  Potential output is the level of GDP that is produced when unemployment is at its so-called natural rate, the capital stock is operating at the capacity for which it was designed, buildings have their normal occupancy rates, etc.

High among the many priorities of newly-inaugurated US President Joe Biden are the challenges of an economy that appeared to be slowing down as the new year started, with the latest employment numbers looking bleak.  A fourth-quarter slowdown in the US recovery from the horrendous second quarter could be attributed to the expiration of some of the bipartisan stimulus programs that were passed by Congress in March of 2020, or to the third wave of Covid-19, or to both factors.  Even if Covid-19 abates during the course of 2021 and pent-up consumer demand then kicks in, the US faces challenges right now, in such areas as schools, infrastructure investment, state and local finances, and especially the fight against the pandemic itself.

The Inaugural episode of HEEP’s “Environmental Insights” podcast, featuring Gina McCarthy, gives a sense of what President-Elect Biden’s forthcoming climate-change-policy objectives might look like. Biden intends to appoint McCarthy as senior White House adviser on climate change, focusing on domestic policy.

Former White House advisor Jason Bordoff, professor and founding director of the Center on Global Energy Policy at Columbia University School of International and Public Affairs (SIPA), says the incoming Biden-Harris Administration will have the opportunity to both lift the nation out of recession and combat global climate change by crafting a thoughtful economic stimulus plan containing a significant green energy investment component.

In few elections has one been able to assess such a big difference between the two candidates in the likely quality of their economic policies.  Biden’s are better.

As Congress and the Trump Administration continue discussions surrounding a second major COVID-19 economic relief bill, many observers are arguing that any eventual economic recovery package ought to include green energy initiatives to help the United States move along a path toward a zero-carbon emissions future.  Drawing upon his White House experience, Joseph Aldy, professor of the practice of public policy at Harvard Kennedy School and formerly a Special Assistant to the President for Energy and Environment during the Obama Administration, shared his perspectives on October 19 on lessons learned from the 2009 American Recovery and Reinvestment Act that policymakers can apply to future economic stimulus negotiations.