Introduction to the Issue

We are pleased to introduce this second issue of the Reviewof Environmental Economics and Policy. Like every issue, thisone includes several articles, a focused symposium, and a setof regular features. In the first of three articles, John Graham describes "The EvolvingRegulatory Role of the U.S. Office of Management and Budget,"where he was the "regulatory czar" as administrator of the Officeof Information and Regulatory Affairs (OIRA) from 2001 to 2006.In his essay, Graham responds to the perception of OMB as antiregulatoryby describing the history of OIRA's proactive     

Climate Change and Forest Sinks: Factors Affecting the Costs of Carbon Sequestration

The possibility of encouraging the growth of forests as a means of sequestering carbon dioxide has received considerable attention, partly because of evidence that this can be a relatively inexpensive means of combating climate change. But how sensitive are such estimates to specific conditions? We examine the sensitivity of carbon sequestration costs to changes in critical factors, including the nature of management and deforestation regimes, silvicultural species, relative prices, and discount rates.     

Introduction to the Issue

Welcome to the fifth issue of the Review of Environmental Economicsand Policy, which once again includes articles, a symposium,and a set of features. In the first of two articles in this issue, Geoffrey Heal reviewswhat we have learned about the economics of global climate changeand related public policy from the extensive literature thathas emerged in response to the controversial Stern Review ofthe Economics of Climate Change. Heal provides his own perspectiveon the Stern Review (which was the focus of a symposium in ourWinter 2008 issue) as well as his views on how the recent debateaffects the economic case for action on     

Dynamic Incentives of Environmental Regulations: The Effects of Alternative Policy Instruments on Technology Diffusion

We develop a framework for comparing empirically the effects of alternative environmental policy instruments on the diffusion of new technology. "Market-based" and "command-and-control" approaches can he quantitatively compared by estimating the economic penalty that firms, through their actions, reveal to be associated with violation of standards. In the context of concerns about global climate change, we empirically examine the likely effects of Pigouvian taxes, technology adoption subsidies, and technology standards. We employ state-level data on the diffusion of thermal insulation in new home construction, comparing the effects of energy prices, insulation cost, and building codes.