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Command and Control Least Effective Approach to Environmental Issues,
According to Bates White Energy Regulation Expert, Jonathan A. Lesser
WASHINGTON, D.C., January 23, 2007—Jonathan A. Lesser, Ph.D., economist and Partner at Bates White, LLC, discusses the superiority of a market-solutions approach over command-and-control environmental regulation in his article, “Command and Control Still Lurks in Every Legislature,” which is forthcoming in the journal Natural Gas & Electricity.
Dr. Lesser’s insights into the economic inefficacy of the command-and-control model are particularly timely given recent actions by the U.S. Congress to legislate stricter controls on greenhouse gases in the electric utility sector.
According to Dr. Lesser, market-based solutions can often achieve pollution reduction at a lower cost to industry because they accommodate the regional nature of the electric industry and they better align costs and benefits. Consumers ultimately gain—both in terms of energy costs and environmental improvements.
“While an ‘act locally, think globally’ approach may be noble, it may not be particularly virtuous if society pays more for an environment that is less clean,” said Lesser.
Examples from several states (including Maryland, Connecticut, and Vermont) are provided. Dr. Lesser also discusses “cap and trade” provisions of the Clean Air Act, legal challenges to the EPA’s interpretation of the New Source Review (NSR) process, and subsidies for renewable resources.
Dr. Lesser has more than 20 years experience working for electric utilities, government, and academia as an economic consultant. He has addressed major economic and regulatory policy issues affecting electric and natural gas utilities, ranging from market structure and operations to cost allocation, rate design, capital investment decision strategies and general regulatory policy. Dr. Lesser has testified before several state public utility commissions and before the Federal Energy Regulatory Commission (FERC). In addition, he has testified in commercial litigation cases.
To download a copy of “Command and Control Still Lurks in Every Legislature,” please visit: http://www.bateswhite.com/news/pdf/NGE_2007_preprint.pdf.
About Bates White
Bates White is a national economic consulting firm of more than 150 professionals.
Established in 1999, Bates White offers consulting services in economics,
finance,
and business analytics. Bates White has offices in Washington, D.C., and San
Diego, Calif.
www.bateswhite.com
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