New Policy Idea: Buy Coal! A Case for Supply-Side Environmental Policy

Bard Harstad, Associate Professor of Managerial Economics and Decision Sciences at the Kellogg School of Management at Northwestern University, recently released a study, "Buy Coal! A Case for Supply-Side Environmental Policy," that will be published in a forthcoming issue of the Journal of Political Economy. Harstad argues that the best policy to curb climate change is to purchase—and hold without using—extraction rights to fossil fuel deposits, as opposed to attempting to reduce greenhouse-gas emissions directly. This idea sparked lively debate at a research workshop on international climate policy organized by the Harvard Project on Climate Agreements in Venice, Italy, on May 21, 2010. The workshop was hosted by Fondazione Eni Enrico Mattei, a leading international research institute focusing on environmental policy and sustainable development.

Harstad has contributed crucial research to the Harvard Project on Climate Agreements in the following publications:

"How to Negotiate and Update Climate Agreements"

"The Dynamics of Climate Agreements"

"Rules for Negotiating and Updating Climate Treaties"

Harstad released additional research through the Harvard Project following the publication of this news item (added June 8, 2021):

"Designing Climate Treaties: Technological Innovation and Duration of Commitment."

"Treaty Design and Duration: Effects on R&D, Participation, and Compliance."

"Pledge and Review Bargaining."