Home - CEEPR CEEPR

The Macroeconomic Impact of Europe’s Carbon Taxes

In a new working paper, Professors Gilbert Metcalf and James Stock estimate the macroeconomic impacts of carbon taxes on GDP and employment growth rates using 30 years of data on carbon taxation in various European countries. They find no evidence of a negative impact on employment or GDP growth. Rather, they find a zero to modest positive impact (albeit imprecisely estimated). They also find a cumulative emissions reduction on the order of 4-6% for a $40/ton CO2 tax covering 30% of emissions.

Economy-Wide Decarbonization Requires Fixing Retail Electricity Rates

In this Research Commentary, the authors identify two issues with the current predominant retail rate design consisting of almost entirely flat volumetric charges ($/kWh). First, retail customers generally do not see the often-substantial hour-to-hour variation in the marginal cost of electricity supply, which is reflected in spot wholesale prices. Second, costs that are fixed in the short run are embedded in the volumetric charge. Absent fundamental reform of retail electricity rates, economy-wide electrification will be substantially more difficult than necessary.

How Much Are Electric Vehicles Driven?

In a new Working Paper, the authors investigate whether EVs in the US are driven less than internal combustion engine vehicles. They find that the dominant factor affecting the driving differential between EVs and ICE vehicles is range. When analysis is limited to EVs with a battery range of 100 miles or more, the differences between EVs and ICE vehicles disappear. With the range of new EVs increasing, they conclude that differences in annual driving between EVs and other vehicles will be insignificant going forward.

Temperature and Cognitive Performance

This paper estimates the effect of temperature on cognitive performance in online brain training games. As this setting represents everyday cognitive tasks, the results are indicative of how temperature affects people on a daily basis. With rising average temperatures and more frequent extreme heat, a thorough understanding of this relationship is central. It finds that, above a threshold, a 1°C increase in ambient air temperature leads to a performance reduction of 0.13%. The effect is mostly driven by individuals living in relatively cold areas, who are less adapted to hot temperatures.

Natural Gas in the U.S. Southeast Power Sector under Deep Decarbonization

The role of natural gas under deep decarbonization pathways in the electric power sector is uncertain due to a number of technological and policy factors. In this study, we analyze the impact of variable renewable energy (VRE) and storage resource costs, the availability of existing nuclear plants, upstream emissions accounting, and direct regulations on new natural gas deployment on least-cost resource mixes selected by a capacity expansion model for the American Southeast across three deep decarbonization pathways.

January 25, 2023

New multidisciplinary climate change curriculum for high schools aims to engage and mobilize teachers and students

CATE aims to engage both students and teachers in a subject that can be overwhelming. “We will be honest about the threats posed by climate change but also give students a sense of agency that they can do something about this,” says Knittel. “And for the many teachers—especially non-science teachers—starved for knowledge and background material, CATE offers resources to give them confidence to implement our curriculum.”

Learn More

November 29, 2022

A breakthrough on “loss and damage,” but also disappointment, at UN climate conference

Throughout the two weeks of the COP27, a delegation of MIT students, faculty, and staff was traveled to Sharm El-Sheikh, which included CEEPR Deputy Director Michael Mehling. In this article on MITNews, he comments on "loss and damage", a central issue in this year's discussions which refers to harms caused by climate change — either through acute catastrophes like extreme weather events or slower-moving impacts like sea level rise — to which communities and countries are unable to adapt.

Learn More

November 14, 2022

Gilbert Metcalf Joins MIT CEEPR

CEEPR is delighted to welcome Gilbert E. Metcalf as a Visiting Professor. Professor Metcalf is an economist who has made important contributions to academic scholarship and government policy making, with a focus on applied public finance and energy and environmental economics. He joins CEEPR and the MIT Sloan School of Management from Tufts University, where he has been the John DiBiaggio Professor of Citizenship and Public Service and a professor of economics. Read more about Gib here.

Learn More

SEE MORE NEWS

The Roosevelt Project

The Roosevelt Project takes a multidisciplinary approach to examine the transitional challenges associated with progress toward a deeply decarbonized U.S. economy. The project aims to chart a path forward through the transition that minimizes worker and community dislocations and enables at-risk communities to sustain employment levels by taking advantage of the economic opportunities present for regional economic development.

Learn More

The CATE Project

The Climate Action Through Education Project aims to develop a science-based climate curriculum for U.S high school students, placing particular emphasis on reaching populations who are underserved and on countering climate denial messages. The curriculum will inform students about the causes and consequences of anthropogenic climate change, while equipping them with the knowledge and sense of agency to contribute to climate mitigation and adaptation.

Learn More

The E2e Project

Through an interdisciplinary approach to the so-called ‘energy efficiency gap’, the E2e Project seeks to evaluate and strengthen policies and incentives for improved energy efficiency. Proven research designs used to achieve these aims include randomized controlled trials (RCTs) and quasi-experimental designs, with data and customer access provided through formal partnerships with private-sector companies.

Learn More

SEE MORE PAPERS AND RESEARCH CONTENT