Bailout MetaRoundup & Alternatives

MetaRoundup:

Several of the economics blogs I read have had useful roundups of bailout commentary. A few I find found useful:

Do we need to act now? on Economist’s View

9/26 Links on Economist’s View

NYT Economix’ analyst roundup

Greg Mankiw’s roundup of commentary

Update 9/29:

Real Time Economics’ Secondary Sources

Update 10/1: 

Greg Mankiw with more commentary

Alternative Plans:

Economists Against the Paulson Plan

Brad de Long on Krugman on the Dodd plan

WSJ Real Time Economics’ Text of Lawmakers’ Agreement on Principles

Thomas Palley on Saving the Financial System

Marginal Revolution on the Republican plan to rescue mortgages instead of buying mortgage assets

Marginal Revolution with a Modest Proposal (finding and isolating toxic assets)

Update 9/27:

Marginal Revolution with substitute bridges

Greg Mankiw with a letter from Robert Shimer with a nice analysis, including problems with Paulson, the lemons problem, and the Diamond, Kaplan, Kashyap, Rajan & Thaler fix

Update 9/28:

Real Time Economics on securitization

Brad deLong on nationalization (the Swedish model)

Update 9/29:

The Big Picture with Stop Targeting Asset Prices

Marginal Revolution asks, is the Sweden plan better?

WCI Design Recommendations

Yesterday the WCI announced its design recommendations.

Update 9/26: WorldChanging has another take on the WCI here.
I haven’t read the whole thing, but here’s my initial impression based on the executive summary:

Scope

Major gases, including CO2, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride.

What? In scope? How/where?
Large Industrial & Commercial, >25,000 MTCO2eq/yr

Combustion Emissions

Yes Point of emission

Process Emissions

Yes Point of emission
Electricity Yes “First Jurisdictional Deliverer” – includes power generated outside WCI
Small Industrial, Commercial, Residential Second Compliance Period (2015-2017) Upstream (“where fuels enter commerce in the WCI Partner jurisdictions, generally at a distributor. The precise point is TBD and may vary by jurisdiction”)
Transportation

Gasoline & Diesel

Second Compliance Period (2015-2017) Upstream (“where fuels enter commerce in the WCI Partner jurisdictions, generally at a terminal rack, final blender, or distributor. The precise point is TBD and may vary by jurisdiction”)

Biofuel combustion

No
Biofuel & fossil fuel upstream To be determined ?
Biomass combustion No, if determined to be carbon neutral  
Agriculture & Forestry No  

(See an earlier Midwestern Accord matrix here.)

Continue reading “WCI Design Recommendations”

Bailout without Representation

The NYT has the draft text and an explanation of the Bush administration’s $700 billion bailout proposal. It audaciously creates a budget authority almost as big as the federal government’s total discretionary spending and bigger than every on-budget agency, seven times the California state budget, without any checks and balances at all:

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

We used to dump tea in harbors for things like this.

A New Method of Macarony Making, As Practiced at Boston

Continue reading “Bailout without Representation”

Backing Off on Ethanol

ST. PAUL (Reuters) –

U.S. Republicans called on Monday for an end to a controversial requirement that gasoline contain a set amount of ethanol, a policy backed by the Bush administration that critics say has helped drive up world food prices.

In their 2008 platform detailing policy positions, Republicans said markets — not government — should determine how much ethanol is blended into gasoline, and pushed for development of a cellulosic version, which could be made from grasses rather than corn.

It will be interesting to see what this implies for California’s LCFS design.

Update

Corn belt Republicans are not pleased.

Contrast the new platform with the situation in 2005.

McCain seems to have done a double-flip-flop, reversing his 2006 reversal of his 2000 campaign position: Continue reading “Backing Off on Ethanol”

Better Get a Bucket

Nature News and Climate Feedback report that cooling of sea surface temperatures ca. 1945 is an artifact of changes in measurement technology. ClimateAudit claims priority. Lucia comments.

Will this – like the satellite temperature trend – be another case of model-data discrepancies resolved in favor of the models?

Update: Prometheus wonders if this changes IPCC conclusions.

Glacier News

A pair of papers in Science this week refines the understanding of the acceleration of glacier flow from lubrication by meltwater. The bottom line:

Now a two-pronged study–both broader and more focused than the one that sounded the alarm–has confirmed that meltwater reaches the ice sheet’s base and does indeed speed the ice’s seaward flow. The good news is that the process is more leisurely than many climate scientists had feared. “Is it, ‘Run for the hills, the ice sheet is falling in the ocean’?” asks glaciologist Richard Alley of Pennsylvania State University in State College. “No. It matters, but it’s not huge.” The finding should ease concerns that Greenland ice could raise sea level a disastrous meter or more by the end of the century. Experts remain concerned, however, because meltwater doesn’t explain why Greenland’s rivers of ice have recently surged forward.

A remarkable excerpt:

The meltwater monitoring caught a 4-kilometer-long, 8-meter-deep lake disappearing into the ice in an hour and a half. As theorists had supposed, once the lake water was deep enough, its weight began to wedge open existing cracks, which only increased the weight of overlying water on the crack tip and accelerated cracking downward. Once the main crack reached the bottom of the ice, heat from churning water flow melted out parts of the fracture, and drainage took off. The lake disappeared in about 1.4 hours at an average rate of 8700 cubic meters per second, exceeding the average flow over Niagara Falls. That’s almost four Olympic pools a second.

Check it out (subscription required).

Plus ça change, plus c’est la même chose

Last Wednesday, President Bush called for the US to halt the growth of greenhouse gas emissions by 2025:

‘It is now time for the U.S. to look beyond 2012 and take the next step,’ Mr. Bush said, a reference to his previously stated national goal, announced in 2002, of an 18 percent reduction in the growth of emissions of heat-trapping gases relative to economic growth by 2012. Mr. Bush said the nation was on track to meeting that target. – NYT

Those who remember the 2002 commitment may recall that, at the time, emissions intensity had historically fallen by 1.3% per year on its own, so that the administration policy actually committed only to an additional 0.4% decline (assuming continuity with history). With GDP growth at about 3% per year, that would leave absolute emissions growing at about 1.7% per year. In fact, intensity has fallen about 2.5% per year since 2002, with much of that in 2006. Since it’s way too soon for investments in climate-related R&D to be having any effect, it’s likely that the savings are due to $100 oil. That is not an emissions reduction method that is likely to pass a cost-benefit test.

CO2 intensity data

EIA data

In the context of the long term,-2.5% over 4 years is still hard to separate from noise. Continue reading “Plus ça change, plus c’est la même chose”

Trade Emissions & Cosmic Rays

Two interesting abstracts I ran across today:

Testing the proposed causal link between cosmic rays and cloud cover

A decrease in the globally averaged low level cloud cover, deduced from the ISCCP infrared data, as the cosmic ray intensity decreased during the solar cycle 22 was observed by two groups. The groups went on to hypothesize that the decrease in ionization due to cosmic rays causes the decrease in cloud cover, thereby explaining a large part of the currently observed global warming. We have examined this hypothesis to look for evidence to corroborate it. None has been found and so our conclusions are to doubt it. From the absence of corroborative evidence, we estimate that less than 23%, at the 95% confidence level, of the 11 year cycle change in the globally averaged cloud cover observed in solar cycle 22 is due to the change in the rate of ionization from the solar modulation of cosmic rays.

Trading Kyoto

Almost one-quarter of carbon dioxide released to the atmosphere is emitted in the production of internationally traded goods and services. Trade therefore represents an unrivalled, and unused, tool for reducing greenhouse gas emissions.