The California Global Warming Solutions Act (AB 32)
Abstract:
In November of 2010, the California voters had to decide whether to support a ballot proposition that would effectively end the state's pioneering effort to reduce global warming. In 2006, the California legislature passed Assembly Bill (AB) 32, "The California Global Warming Solutions Act", a law mandating that California reduce its emissions of greenhouse gases to 1990 levels by 2020. Supporters of AB 32 argued that it would energize other states to make similar commitments and would help the California economy by spurring the development of industries that would be national and global leaders in the increasingly important "green" economy. Critics countered that the effect on global warming would be small and the costs to the affected industries high and they had placed a proposition on the 2010 ballot that called for the suspension of AB 32.
Learning Objective:
This case is intended for use in courses in micro-economics or environmental or energy policy to illustrate the concepts of public goods and to support a discussion of various ways of achieving emissions reductions including standards, taxes or subsidies, and cap and trade.
Other Details
- Teaching Plan:
- Available with Educator Access
- Case Author:
- Jose Gomez-Ibanez
- Faculty Lead:
- Jose Gomez-Ibanez
- Pages (incl. exhibits):
- 24
- Setting:
- United States
- Language:
- English
- Funding Source:
- U.S. Department of Transportation, New England University Transportation Center