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Wrap Up
Tentative Plan for Final Exam
   10-20 pts. 5-10 multiple choice (for VMT lectures)
   ~20 pts. 10 definitions of acronyms, common
    phrases) (eg, CAFE), with short explanations (1-2
    sentences)
   ~30 pts. 4-6 short answers (~1 paragraph)
   ~30 pts. ~2 short essays (out of 3-4 choices) (<1
    page each)
Final Exam
   Key concepts: different policy
    approaches; mandates vs regulations;
    role of technology and behavior, trends,
    externalities, three-legged stool, future
    of oil, elasticity, LCA, pricing, if you
    cant measure it you cant manage it,
    no silver bullets (need portfolio)
PROBLEMS
   Air Quality
       Local air quality
       Health impacts of pollution
   Energy
       Oil prices, costs of travel and goods transport
       Oil imports, security, geopolitics
   Climate Change
       Environmental, economic impacts
       Currently active policy area (e.g. Californias AB 32, low carbon fuel
        standard)
Key overarching issues

    Are we running out of oil?
    Why are we interested in alternative fuels?
    What should we do about climate change?
    Is air pollution a severe problem?
    Is technology the solution to energy, air
     pollution, and climate problems?
    How do we use policy to manage car use,
     and why?
Systems challenges
How to transform vehicles, fuels, and mobility?

Case study: Why are fuel cell vehicles arguably the most difficult
    technology to introduce? Why did EVs supplant FCVs as the
    fuel du jour?
Externalities
 What are they?
    Impacts (costs or benefits) not directly involved in an
     economic decision
 Why do we care?
    Sometimes the free market system does not fully account for
     all economic costs and benefits to society
    This can result in socially sub-optimal results
 Transportation examples: air pollution, petroleum
  dependence, congestion, climate change

                            Money

             Consumer                     Firm

                            Goods

 Consumption                                     Production


               External impacts on others not
               involved in economic decision
Primary Policy Approaches to Deal
        with Externalities
   Regulatory instruments  Government could ban
    (or restrict) air pollution, enforce with inspectors
    and lawyers
   Pure market instrument (Pigouvian tax) 
    Government could tax polluters in accordance
    with the social costs they generate
   Marketable permits  Government could issue
    pollution permits, and allow the polluters to
    trade them to achieve pollution reduction at
    lowest cost
Key policy design issues
   If cant measure it, you cant manage it
    (methodological and data issues)
   Role of causalityesp for AQ and climate change
   Who should be made responsible for solving a
    problemkeeping in mind jurisdictional challenges
    (whos in charge and can do something about it)
   Market based approaches vs regulatory and
    voluntary instruments

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20+wrap+up 1

  • 2. Tentative Plan for Final Exam 10-20 pts. 5-10 multiple choice (for VMT lectures) ~20 pts. 10 definitions of acronyms, common phrases) (eg, CAFE), with short explanations (1-2 sentences) ~30 pts. 4-6 short answers (~1 paragraph) ~30 pts. ~2 short essays (out of 3-4 choices) (<1 page each)
  • 3. Final Exam Key concepts: different policy approaches; mandates vs regulations; role of technology and behavior, trends, externalities, three-legged stool, future of oil, elasticity, LCA, pricing, if you cant measure it you cant manage it, no silver bullets (need portfolio)
  • 4. PROBLEMS Air Quality Local air quality Health impacts of pollution Energy Oil prices, costs of travel and goods transport Oil imports, security, geopolitics Climate Change Environmental, economic impacts Currently active policy area (e.g. Californias AB 32, low carbon fuel standard)
  • 5. Key overarching issues Are we running out of oil? Why are we interested in alternative fuels? What should we do about climate change? Is air pollution a severe problem? Is technology the solution to energy, air pollution, and climate problems? How do we use policy to manage car use, and why?
  • 6. Systems challenges How to transform vehicles, fuels, and mobility? Case study: Why are fuel cell vehicles arguably the most difficult technology to introduce? Why did EVs supplant FCVs as the fuel du jour?
  • 7. Externalities What are they? Impacts (costs or benefits) not directly involved in an economic decision Why do we care? Sometimes the free market system does not fully account for all economic costs and benefits to society This can result in socially sub-optimal results Transportation examples: air pollution, petroleum dependence, congestion, climate change Money Consumer Firm Goods Consumption Production External impacts on others not involved in economic decision
  • 8. Primary Policy Approaches to Deal with Externalities Regulatory instruments Government could ban (or restrict) air pollution, enforce with inspectors and lawyers Pure market instrument (Pigouvian tax) Government could tax polluters in accordance with the social costs they generate Marketable permits Government could issue pollution permits, and allow the polluters to trade them to achieve pollution reduction at lowest cost
  • 9. Key policy design issues If cant measure it, you cant manage it (methodological and data issues) Role of causalityesp for AQ and climate change Who should be made responsible for solving a problemkeeping in mind jurisdictional challenges (whos in charge and can do something about it) Market based approaches vs regulatory and voluntary instruments