Teaching Case - The California Global Warming Solutions Act (AB 32)

The California Global Warming Solutions Act (AB 32)


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  • Product Description

    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

    Publication Date: June 15, 2011
    Teaching Plan: Available with Educator Access
    HKS Case Number: 1944.0
    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
    _year: 2010-2015
    _pages: 16-25
    _geography: US & Canada
  • Warranty Information

    /review/1944.0.EducatorCopy.pdf, /teachingplan/1944_2.pdf