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Thursday, September 29, 2022

Labour economics

From Wikipedia, the free encyclopedia

A "help wanted" sign seeks available workers for jobs.

Labour economics, or labor economics, seeks to understand the functioning and dynamics of the markets for wage labour. Labour is a commodity that is supplied by labourers, usually in exchange for a wage paid by demanding firms. Because these labourers exist as parts of a social, institutional, or political system, labour economics must also account for social, cultural and political variables.

Labour markets or job markets function through the interaction of workers and employers. Labour economics looks at the suppliers of labour services (workers) and the demanders of labour services (employers), and attempts to understand the resulting pattern of wages, employment, and income. These patterns exist because each individual in the market is presumed to make rational choices based on the information that they know regarding wage, desire to provide labour, and desire for leisure. Labour markets are normally geographically bounded, but the rise of the internet has brought about a 'planetary labour market' in some sectors.

Labour is a measure of the work done by human beings. It is conventionally contrasted with other factors of production, such as land and capital. Some theories focus on human capital, or entrepreneurship, (which refers to the skills that workers possess and not necessarily the actual work that they produce). Labour is unique to study because it is a special type of good that cannot be separated from the owner (i.e. the work cannot be separated from the person who does it). A labour market is also different from other markets in that workers are the suppliers and firms are the demanders.

Macro and micro analysis of labour markets

There are two sides to labour economics. Labour economics can generally be seen as the application of microeconomic or macroeconomic techniques to the labour market. Microeconomic techniques study the role of individuals and individual firms in the labour market. Macroeconomic techniques look at the interrelations between the labour market, the goods market, the money market, and the foreign trade market. It looks at how these interactions influence macro variables such as employment levels, participation rates, aggregate income and gross domestic product.

Macroeconomics of labour markets

Job advertisement board in Shenzhen

The labour market in macroeconomic theory shows that the supply of labour exceeds demand, which has been proven by salary growth that lags productivity growth. When labour supply exceeds demand, salary faces downward pressure due to an employer's ability to pick from a labour pool that exceeds the jobs pool. However, if the demand for labour is larger than the supply, salary increases, as employee have more bargaining power while employers have to compete for scarce labour.

The Labour force (LF) is defined as the number of people of working age, who are either employed or actively looking for work (unemployed). The labour force participation rate (LFPR) is the number of people in the labour force divided by the size of the adult civilian noninstitutional population (or by the population of working age that is not institutionalized), LFPR = LF/Population.

The non-labour force includes those who are not looking for work, those who are institutionalized (such as in prisons or psychiatric wards), stay-at-home spouses, children not of working age, and those serving in the military. The unemployment level is defined as the labour force minus the number of people currently employed. The unemployment rate is defined as the level of unemployment divided by the labour force. The employment rate is defined as the number of people currently employed divided by the adult population (or by the population of working age). In these statistics, self-employed people are counted as employed.

The labour market has the ability to create a higher derivative efficiency of labour, especially on a national and international level, compared to simpler forms of labour distribution, leading to a higher financial GDP growth and output. An efficient labor market is important for the private sector as it drives up derivative income through the reduction of relative costs of labour. This presupposes that division of labour is used as a method to attain cost efficiency.

Variables like employment level, unemployment level, labour force, and unfilled vacancies are called stock variables because they measure a quantity at a point in time. They can be contrasted with flow variables which measure a quantity over a duration of time. Changes in the labour force are due to flow variables such as natural population growth, net immigration, new entrants, and retirements. Changes in unemployment depend on inflows (non-employed people starting to look for jobs and employed people who lose their jobs that are looking for new ones) and outflows (people who find new employment and people who stop looking for employment). When looking at the overall macroeconomy, several types of unemployment have been identified, which can be separated into two categories of natural and unnatural unemployment.

Natural Unemployment

  • Frictional unemployment – This reflects the fact that it takes time for people to find and settle into new jobs that they feel are appropriate for them and their skill set. Technological advancement often reduces frictional unemployment; for example, internet search engines have reduced the cost and time associated with locating employment or personnel selection.
  • Structural unemployment – The number of jobs available in an industry are not sufficient enough to provide jobs to all persons who are interested in working or qualified to work in that industry. This can be due to the changes in industries prevalent in a country or because wages for the industry are too high, causing people to want to supply their labour to that industry.
  • Natural rate of unemployment (also known as full employment) – This is the summation of frictional and structural unemployment, that excludes cyclical contributions of unemployment (e.g. recessions) and seasonal unemployment. It is the lowest rate of unemployment that a stable economy can expect to achieve, given that some frictional and structural unemployment is inevitable. Economists do not agree on the level of the natural rate, with estimates ranging from 1% to 5%, or on its meaning – some associate it with "non-accelerating inflation". The estimated rate varies between countries and across time.

Unnatural Unemployment

  • Demand deficient unemployment (also known as cyclical unemployment) – In Keynesian economics, any level of unemployment beyond the natural rate is probably due to insufficient goods demand in the overall economy. During a recession, aggregate expenditure is deficient causing the underutilisation of inputs (including labour). Aggregate expenditure (AE) can be increased, according to Keynes, by increasing consumption spending (C), increasing investment spending (I), increasing government spending (G), or increasing the net of exports minus imports (X−M), since AE = C + I + G + (X−M).
  • Seasonal unemployment – Unemployment due to seasonal fluctuations of demand for workers across industries, such as in the retail industry after holidays that involve a lot of shopping are over.

Neoclassical microeconomics

Neoclassical economists view the labour market as similar to other markets in that the forces of supply and demand jointly determine the price (in this case the wage rate) and quantity (in this case the number of people employed).

However, the labour market differs from other markets (like the markets for goods or the financial market) in several ways. In particular, the labour market may act as a non-clearing market. While according to neoclassical theory most markets quickly attain a point of equilibrium without excess supply or demand, this may not be true of the labour market: it may have a persistent level of unemployment. Contrasting the labour market to other markets also reveals persistent compensating differentials among similar workers.

Models that assume perfect competition in the labour market, as discussed below, conclude that workers earn their marginal product of labour.

Neoclassical supply

The neoclassical model analyzes the trade-off between leisure hours and working hours.
 
Railroad work

Households are suppliers of labour. In microeconomic theory, people are assumed to be rational and seeking to maximize their utility function. In the labour market model, their utility function expresses trade-offs in preference between leisure time and income from time used for labour. However, they are constrained by the hours available to them.

Let w denote the hourly wage, k denote total hours available for labour and leisure, L denote the chosen number of working hours, π denote income from non-labour sources, and A denote leisure hours chosen. The individual's problem is to maximise utility U, which depends on total income available for spending on consumption and also depends on the time spent in leisure, subject to a time constraint, with respect to the choices of labour time and leisure time:

This is shown in the graph below, which illustrates the trade-off between allocating time to leisure activities and allocating it to income-generating activities. The linear constraint indicates that every additional hour of leisure undertaken requires the loss of an hour of labour and thus of the fixed amount of goods that that labour's income could purchase. Individuals must choose how much time to allocate to leisure activities and how much to working. This allocation decision is informed by the indifference curve labelled IC1. The curve indicates the combinations of leisure and work that will give the individual a specific level of utility. The point where the highest indifference curve is just tangent to the constraint line (point A), illustrates the optimum for this supplier of labour services.

If consumption is measured by the value of income obtained, this diagram can be used to show a variety of interesting effects. This is because the absolute value of the slope of the budget constraint is the wage rate. The point of optimisation (point A) reflects the equivalency between the wage rate and the marginal rate of substitution of leisure for income (the absolute value of the slope of the indifference curve). Because the marginal rate of substitution of leisure for income is also the ratio of the marginal utility of leisure (MUL) to the marginal utility of income (MUY), one can conclude:

where Y is total income and the right side is the wage rate.

Effects of a wage increase
Effects of a wage increase

If the wage rate increases, this individual's constraint line pivots up from X,Y1 to X,Y2. He/she can now purchase more goods and services. His/her utility will increase from point A on IC1 to point B on IC2. To understand what effect this might have on the decision of how many hours to work, one must look at the income effect and substitution effect.

The wage increase shown in the previous diagram can be decomposed into two separate effects. The pure income effect is shown as the movement from point A to point C in the next diagram. Consumption increases from YA to YC and – since the diagram assumes that leisure is a normal good – leisure time increases from XA to XC. (Employment time decreases by the same amount as leisure increases.)

The Income and Substitution effects of a wage increase
The Income and Substitution effects of a wage increase

But that is only part of the picture. As the wage rate rises, the worker will substitute away from leisure and into the provision of labour—that is, will work more hours to take advantage of the higher wage rate, or in other words substitute away from leisure because of its higher opportunity cost. This substitution effect is represented by the shift from point C to point B. The net impact of these two effects is shown by the shift from point A to point B. The relative magnitude of the two effects depends on the circumstances. In some cases, such as the one shown, the substitution effect is greater than the income effect (in which case more time will be allocated to working), but in other cases, the income effect will be greater than the substitution effect (in which case less time is allocated to working). The intuition behind this latter case is that the individual decides that the higher earnings on the previous amount of labour can be "spent" by purchasing more leisure.

The Labour Supply curve
The Labour Supply curve

If the substitution effect is greater than the income effect, an individual's supply of labour services will increase as the wage rate rises, which is represented by a positive slope in the labour supply curve (as at point E in the adjacent diagram, which exhibits a positive wage elasticity). This positive relationship is increasing until point F, beyond which the income effect dominates the substitution effect and the individual starts to reduce the number of labour hours he supplies (point G) as wage increases; in other words, the wage elasticity is now negative.

The direction of the slope may change more than once for some individuals, and the labour supply curve is different for different individuals.

Other variables that affect the labour supply decision, and can be readily incorporated into the model, include taxation, welfare, work environment, and income as a signal of ability or social contribution.

Neoclassical demand

A firm's labour demand is based on its marginal physical product of labour (MPPL). This is defined as the additional output (or physical product) that results from an increase of one unit of labour (or from an infinitesimal increase in labour). (See also Production theory basics.)

Labour demand is a derived demand; that is, hiring labour is not desired for its own sake but rather because it aids in producing output, which contributes to an employer's revenue and hence profits. The demand for an additional amount of labour depends on the Marginal Revenue Product (MRP) and the marginal cost (MC) of the worker. With a perfectly competitive goods market, the MRP is calculated by multiplying the price of the end product or service by the Marginal Physical Product of the worker. If the MRP is greater than a firm's Marginal Cost, then the firm will employ the worker since doing so will increase profit. The firm only employs however up to the point where MRP=MC, and not beyond, in neoclassical economic theory.

The MRP of the worker is affected by other inputs to production with which the worker can work (e.g. machinery), often aggregated under the term "capital". It is typical in economic models for greater availability of capital for a firm to increase the MRP of the worker, all else equal. Education and training are counted as "human capital". Since the amount of physical capital affects MRP, and since financial capital flows can affect the amount of physical capital available, MRP and thus wages can be affected by financial capital flows within and between countries, and the degree of capital mobility within and between countries.

According to neoclassical theory, over the relevant range of outputs, the marginal physical product of labour is declining (law of diminishing returns). That is, as more and more units of labour are employed, their additional output begins to decline.

Additionally, although the MRP is a good way of expressing an employer's demand, other factors such as social group formation can the demand, as well as the labour supply. This constantly restructures exactly what a labour market is, and leads way to cause problems for theories of inflation.

Equilibrium

A firm's labour demand in the short run (D) and a horizontal supply curve (S)
A firm's labour demand in the short run (D) and a horizontal supply curve (S)

The marginal revenue product of labour can be used as the demand for labour curve for this firm in the short run. In competitive markets, a firm faces a perfectly elastic supply of labour which corresponds with the wage rate and the marginal resource cost of labour (W = SL = MFCL). In imperfect markets, the diagram would have to be adjusted because MFCL would then be equal to the wage rate divided by marginal costs. Because optimum resource allocation requires that marginal factor costs equal marginal revenue product, this firm would demand L units of labour as shown in the diagram.

The demand for labour of this firm can be summed with the demand for labour of all other firms in the economy to obtain the aggregate demand for labour. Likewise, the supply curves of all the individual workers (mentioned above) can be summed to obtain the aggregate supply of labour. These supply and demand curves can be analysed in the same way as any other industry demand and supply curves to determine equilibrium wage and employment levels.

Wage differences exist, particularly in mixed and fully/partly flexible labour markets. For example, the wages of a doctor and a port cleaner, both employed by the NHS, differ greatly. There are various factors concerning this phenomenon. This includes the MRP of the worker. A doctor's MRP is far greater than that of the port cleaner. In addition, the barriers to becoming a doctor are far greater than that of becoming a port cleaner. To become a doctor takes a lot of education and training which is costly, and only those who excel in academia can succeed in becoming doctors. The port cleaner, however, requires relatively less training. The supply of doctors is therefore significantly less elastic than that of port cleaners. Demand is also inelastic as there is a high demand for doctors and medical care is a necessity, so the NHS will pay higher wage rates to attract the profession.

Monopsony

Some labour markets have a single employer and thus do not satisfy the perfect competition assumption of the neoclassical model above. The model of a monopsonistic labour market gives a lower quantity of employment and a lower equilibrium wage rate than does the competitive model.

Asymmetric information

An advertisement for labour from Sabah and Sarawak, seen in Jalan Petaling, Kuala Lumpur

In many real-life situations, the assumption of perfect information is unrealistic. An employer does not necessarily know how hard workers are working or how productive they are. This provides an incentive for workers to shirk from providing their full effort, called moral hazard. Since it is difficult for the employer to identify the hard-working and the shirking employees, there is no incentive to work hard and productivity falls overall, leading to the hiring of more workers and a lower unemployment rate.

One solution that is used to avoid a moral hazard is stock options that grant employees the chance to benefit directly from a firm's success. However, this solution has attracted criticism as executives with large stock-option packages have been suspected of acting to over-inflate share values to the detriment of the long-run welfare of the firm. Another solution, foreshadowed by the rise of temporary workers in Japan and the firing of many of these workers in response to the financial crisis of 2008, is more flexible job- contracts and -terms that encourage employees to work less than full-time by partially compensating for the loss of hours, relying on workers to adapt their working time in response to job requirements and economic conditions instead of the employer trying to determine how much work is needed to complete a given task and overestimating.

Another aspect of uncertainty results from the firm's imperfect knowledge about worker ability. If a firm is unsure about a worker's ability, it pays a wage assuming that the worker's ability is the average of similar workers. This wage under compensates high-ability workers which may drive them away from the labour market as well as at the same time attracting low-ability workers. Such a phenomenon, called adverse selection, can sometimes lead to market collapse.

One way to combat adverse selection, firms will try to use signalling, pioneered by Michael Spence, whereby employers could use various characteristics of applicants differentiate between high-ability or low-ability workers. One common signal used is education, whereby employers assume that high-ability workers will have higher levels of education. Employers can then compensate high-ability workers with higher wages. However, signalling does not always work, and it may appear to an external observer that education has raised the marginal product of labour, without this necessarily being true.

Search models

One of the major research achievements of the 1990–2010 period was the development of a framework with dynamic search, matching, and bargaining.

Personnel economics: hiring and incentives

At the micro level, one sub-discipline eliciting increased attention in recent decades is analysis of internal labour markets, that is, within firms (or other organisations), studied in personnel economics from the perspective of personnel management. By contrast, external labour markets "imply that workers move somewhat fluidly between firms and wages are determined by some aggregate process where firms do not have significant discretion over wage setting." The focus is on "how firms establish, maintain, and end employment relationships and on how firms provide incentives to employees," including models and empirical work on incentive systems and as constrained by economic efficiency and risk/incentive tradeoffs relating to personnel compensation.

Discrimination and inequality

Inequality and discrimination in the workplace can have many effects on workers.

In the context of labour economics, inequality is usually referring to the unequal distribution of earning between households. Inequality is commonly measured by economists using the Gini coefficient. This coefficient does not have a concrete meaning but is more used as a way to compare inequality across regions. The higher the Gini coefficient is calculated to be the larger inequality exists in a region. Over time, inequality has, on average, been increasing. This is due to numerous factors including labour supply and demand shifts as well as institutional changes in the labour market. On the shifts in labour supply and demand, factors include demand for skilled workers going up more than the supply of skilled workers and relative to unskilled workers as well as technological changes that increase productivity; all of these things cause wages to go up for skilled labour while unskilled worker wages stay the same or decline. As for the institutional changes, a decrease in union power and a declining real minimum wage, which both reduce unskilled workers wages, and tax cuts for the wealthy all increase the inequality gap between groups of earners.

As for discrimination, it is the difference in pay that can be attributed to the demographic differences between people, such as gender, race, ethnicity, religion, sexual orientation, etc, even though these factors do not affect the productivity of the worker. Many regions and countries have enacted government policies to combat discrimination, including discrimination in the workplace. Discrimination can be modelled and measured in numerous ways. The Oaxaca decomposition is a common method used to calculate the amount of discrimination that exists when wages differ between groups of people. This decomposition aims to calculate the difference in wages that occurs because of differences in skills versus the returns to those skills. A way of modelling discrimination in the workplace when dealing with wages are Gary Becker's taste models. Using taste models, employer discrimination can be thought of as the employer not hiring the minority worker because of their perceived cost of hiring that worker is higher than that of the cost of hiring a non-minority worker, which causes less hiring of the minority. Another taste model is for employee discrimination, which does not cause a decline in the hiring of minorities, but instead causes a more segregated workforce because the prejudiced worker feels that they should be paid more to work next to the worker they are prejudiced against or that they are not paid an equal amount as the worker they are prejudiced against. One more taste model involves customer discrimination, whereby the employers themselves are not prejudiced but believe that their customers might be, so therefore the employer is less likely to hire the minority worker if they are going to interact with customers that are prejudiced. There are many other taste models other than these that Gary Becker has made to explain discrimination that causes differences in hiring in wages in the labour market.

Criticisms

Many sociologists, political economists, and heterodox economists claim that labour economics tends to lose sight of the complexity of individual employment decisions. These decisions, particularly on the supply side, are often loaded with considerable emotional baggage and a purely numerical analysis can miss important dimensions of the process, such as social benefits of a high income or wage rate regardless of the marginal utility from increased consumption or specific economic goals.

From the perspective of mainstream economics, neoclassical models are not meant to serve as a full description of the psychological and subjective factors that go into a given individual's employment relations, but as a useful approximation of human behaviour in the aggregate, which can be fleshed out further by the use of concepts such as information asymmetry, transaction costs, contract theory etc.

Also missing from most labour market analyses is the role of unpaid labour such as unpaid internships where workers with little or no experience are allowed to work a job without pay so that they can gain experience in a particular profession. Even though this type of labour is unpaid it can nevertheless play an important part in society if not abused by employers. The most dramatic example is child raising. However, over the past 25 years an increasing literature, usually designated as the economics of the family, has sought to study within household decision making, including joint labour supply, fertility, child-raising, as well as other areas of what is generally referred to as home production.

Wage slavery

The labour market, as institutionalised under today's market economic systems, has been criticised, especially by both mainstream socialists and anarcho-syndicalists, who utilise the term wage slavery as a pejorative for wage labour. Socialists draw parallels between the trade of labour as a commodity and slavery. Cicero is also known to have suggested such parallels.

According to Noam Chomsky, analysis of the psychological implications of wage slavery goes back to the Enlightenment era. In his 1791 book On the Limits of State Action, classical liberal thinker Wilhelm von Humboldt explained how "whatever does not spring from a man's free choice, or is only the result of instruction and guidance, does not enter into his very nature; he does not perform it with truly human energies, but merely with mechanical exactness" and so when the labourer works under external control, "we may admire what he does, but we despise what he is." Both the Milgram and Stanford experiments have been found useful in the psychological study of wage-based workplace relations.

The American philosopher John Dewey posited that until "industrial feudalism" is replaced by "industrial democracy", politics will be "the shadow cast on society by big business". Thomas Ferguson has postulated in his investment theory of party competition that the undemocratic nature of economic institutions under capitalism causes elections to become occasions when blocs of investors coalesce and compete to control the state.

As per anthropologist David Graeber, the earliest wage labour contracts we know about were in fact contracts for the rental of chattel slaves (usually the owner would receive a share of the money, and the slave, another, with which to maintain his or her living expenses.) Such arrangements, according to Graeber, were quite common in New World slavery as well, whether in the United States or Brazil. C. L. R. James argued that most of the techniques of human organisation employed on factory workers during the industrial revolution were first developed on slave plantations.

Additionally, Marxists posit that labour-as-commodity, which is how they regard wage labour, provides an absolutely fundamental point of attack against capitalism. "It can be persuasively argued", noted one concerned philosopher, "that the conception of the worker's labour as a commodity confirms Marx's stigmatisation of the wage system of private capitalism as 'wage-slavery;' that is, as an instrument of the capitalist's for reducing the worker's condition to that of a slave, if not below it."

Wednesday, September 28, 2022

Climate change policy of the United States

States that have declared GHG mitigation strategies or hold action plans

The climate change policy of the United States has major impacts on global climate change and on global climate change mitigation. This is because the United States is the second largest emitter of greenhouse gasses in the world after China, and is among the countries with the highest greenhouse gas emissions per person in the world. In total the United States has emitted over 400 billion metric tons of greenhouse gasses, more than any country in the world.

Climate change policy is developed at the local, state and federal levels of government. Global climate change was first addressed in United States policy beginning in the early 1950s. The Environmental Protection Agency (EPA) defines climate change as "any significant change in the measures of climate lasting for an extended period of time." Essentially, climate change includes major changes in temperature, precipitation, or wind patterns, as well as other effects, that occur over several decades or longer. The policy with the biggest US investment in climate change mitigation is the Inflation Reduction Act of 2022.

The politics of climate change have polarized certain political parties and other organizations. The Democratic Party advocates for an expansion of climate change mitigation policies whereas the Republican Party tends to be skeptical about the effects on business, as well as advocate for slower change, inaction, or outright reactionary reversal of existing climate change mitigation policies. Most lobbying on climate policy in the United States is done by corporations that are publicly opposed to reducing carbon emissions.

Federal policy

International law

The United States, although a signatory to the Kyoto Protocol, has neither ratified nor withdrawn from the protocol. In 1997, the US Senate voted unanimously under the Byrd–Hagel Resolution that it was not the sense of the Senate that the United States should be a signatory to the Kyoto Protocol. In 2001, former National Security Adviser Condoleezza Rice, stated that the Protocol "is not acceptable to the Administration or Congress".

In October 2003, the Pentagon published a report titled An Abrupt Climate Change Scenario and Its Implications for United States National Security by Peter Schwartz and Doug Randall. The authors conclude by stating, "this report suggests that, because of the potentially dire consequences, the risk of abrupt climate change, although uncertain and quite possibly small, should be elevated beyond a scientific debate to a U.S. national security concern."

Congress

In October 2003 and again in June 2005, the McCain-Lieberman Climate Stewardship Act failed a vote in the US Senate. In the 2005 vote, Republicans opposed the Bill 49–6, while Democrats supported it 37–10.

In January 2007, Democratic House Speaker Nancy Pelosi announced she would form a United States Congress subcommittee to examine global warming. Sen. Joe Lieberman said, "I'm hot to get something done. It's hard not to conclude that the politics of global warming has changed and a new consensus for action is emerging and it is a bipartisan consensus." Senators Bernie Sanders (I-VT) and Barbara Boxer (D-CA) introduced the Global Warming Pollution Reduction Act on January 15, 2007. The measure would provide funding for R&D on geologic sequestration of carbon dioxide (CO2), set emissions standards for new vehicles and a renewable fuels requirement for gasoline beginning in 2016, establish energy efficiency and renewable portfolio standards beginning in 2008 and low-carbon electric generation standards beginning in 2016 for electric utilities, and require periodic evaluations by the National Academy of Sciences to determine whether emissions targets are adequate. However, the bill died in committee. Two more bills, the Climate Protection Act and the Sustainable Energy Act, proposed February 14, 2013, also failed to pass committee.

The House of Representatives approved the American Clean Energy and Security Act (ACES) on June 26, 2009, by a vote of 219–212, but the bill failed to pass the Senate.

In March 2011, the Republicans submitted a bill to the U.S. Congress that would prohibit the Environmental Protection Agency (EPA) from regulating greenhouse gasses as pollutants. As of 2012, the EPA was still overseeing regulation under the Clean Air Act.

In 2019, there were 130 elected Congressional leaders who had expressed doubt about the science of climate change.

Clinton administration

Upon the start of his presidency in 1993, Bill Clinton committed the United States to lowering their greenhouse gas emissions to 1990 levels by 2000 through his biodiversity treaty, reflecting his attempt to return the United States to the global platform of climate policy. Clinton's British Thermal Unit (BTU) Tax and Climate Change Action Plan were also announced within the first year of his presidency, calling for a tax on energy heat content and plans for energy efficiency and joint implementations, respectively.

The Climate Change Action Plan was announced on October 19, 1993. This plan aimed to reduce greenhouse gas emissions to 1990 levels by 2000. Clinton described this goal as "ambitious but achievable," and called for 44 action steps to achieve this goal. Among these steps were voluntary participation by industry, especially those in the commercial and energy supply fields. Clinton allotted $1.9 billion to fund this plan from the federal budget and called for an additional $60 billion funding to come voluntarily businesses and industries.

The British Thermal Tax proposed by Clinton in early 1993 called for a tax on producers of gasoline, oil, and other fuels based on fuel content in accordance to the British Thermal Unit (BTU). The British Thermal Unit is a measure of heat corresponding to the quantity of heat needed to raise the temperature of water by one degree Fahrenheit. The tax also applied to electricity produced by hydro and nuclear power, but exempted renewable energy sources such as geothermal, solar, and wind. The Clinton Administration planned to collect up to $22.3 billion in revenue from the tax by 1997. The tax was opposed by the energy-intensive industry, who feared that the price increase caused by the tax would make U.S. products undesirable on an international level, and thus was never fully implemented.

In 1994, the U.S. called for a new limit on greenhouse gas emissions post-2000 in at the August 1994 INC-10. They also called for a focus on joint implementation, and for new developing countries to limit their emissions. Environmental groups, including the Climate Action Network (CAN), critiqued these efforts, questioning U.S. focus on limiting the emissions of other countries when it had not established its own.

The U.S. government under Clinton succeeded in pushing its agenda for joint implementation in the 1995 Conference of the Parties (COP-1). This victory is noted in the Berlin Mandate of April 1995, which called for developed countries to lead the implementation of national mitigation policies.

Clinton signed the Kyoto Protocol on behalf of the United States in 1997, pledging the country to a non-binding 7% reduction of greenhouse gas emissions. He claimed that the agreement was "environmentally strong and economically sound," and expressed a desire for greater involvement in the treaty by developing nations.

In his second term, Clinton announced his FY00 proposal, which allotted funding for a new set of environmental policies. Under this proposal, the President announced a new Clean Air Partnership Fund, new tax incentives and investments, and funding for environmental research of both natural and man-made changes to the climate.

The Clean Air Partnership Fund was proposed to finance state and local government efforts for greenhouse gas emission reductions in cooperation with EPA. Under this fund, $200 million was allotted to promote and finance innovation projects meant to reduce air pollution. It also supported the creation of partnerships between the local and federal governments, and private sector.

The Climate Change Technology Initiative provided $4 billion in tax incentives over a five-year period. The tax credits applied to energy efficient homes and building equipment, implementation of solar energy systems, electric and hybrid vehicles, clean energy, and the power industry. The Climate Change Technology Initiative also provided funding for additional research and development on clean technology, especially in the building, electricity, industry, and transportation sectors.

G.W. Bush administration

In March 2001, the George W. Bush Administration announced that it would not implement the Kyoto Protocol, an international treaty signed in 1997 in Kyoto, Japan that would require nations to reduce their greenhouse gas emissions, claiming that ratifying the treaty would create economic setbacks in the U.S. and does not put enough pressure to limit emissions from developing nations. In February 2002, President Bush announced his alternative to the Kyoto Protocol, by bringing forth a plan to reduce the intensity of greenhouse gasses by 18 percent over 10 years. The intensity of greenhouse gasses specifically is the ratio of greenhouse gas emissions and economic output, meaning that under this plan, emissions would still continue to grow, but at a slower pace. Bush stated that this plan would prevent the release of 500 million metric tons of greenhouse gases, which is about the equivalent of 70 million cars from the road. This target would achieve this goal by providing tax credits to businesses that use renewable energy sources.

The Bush administration has been accused of implementing an industry-formulated disinformation campaign designed to mislead the American public on global warming and to forestall limits on "climate polluters", according to a report in Rolling Stone magazine that reviewed hundreds of internal government documents and former government officials. The book Hell and High Water asserts that there has been a disingenuous, concerted and effective campaign to convince Americans that the science is not proven, or that global warming is the result of natural cycles, and that there needs to be more research. The book claims that, to delay action, industry and government spokesmen suggest falsely that "technology breakthroughs" will eventually save us with hydrogen cars and other fixes. It calls on voters to demand immediate government action to curb emissions. Papers presented at an International Scientific Congress on Climate Change, held in 2009 under the sponsorship of the University of Copenhagen in cooperation with nine other universities in the International Alliance of Research Universities (IARU), maintained that the climate change skepticism that is so prevalent in the USA "was largely generated and kept alive by a small number of conservative think tanks, often with direct funding from industries having special interests in delaying or avoiding the regulation of greenhouse gas emissions".

According to testimony taken by the U.S. House of Representatives, the Bush White House pressured American scientists to suppress discussion of global warming "High-quality science" was "struggling to get out", as the Bush administration pressured scientists to tailor their writings on global warming to fit the Bush administration's skepticism, in some cases at the behest of an ex-oil industry lobbyist. "Nearly half of all respondents perceived or personally experienced pressure to eliminate the words 'climate change,' 'global warming' or other similar terms from a variety of communications." Similarly, according to the testimony of senior officers of the Government Accountability Project, the White House attempted to bury the report "National Assessment of the Potential Consequences of Climate Variability and Change", produced by U.S. scientists pursuant to U.S. law, Some U.S. scientists resigned their jobs rather than give in to White House pressure to underreport global warming and removed key portions of a Centers for Disease Control and Prevention (CDC) report given to the U.S. Senate Environment and Public Works Committee about the dangers to human health of global warming.

The Bush Administration worked to undermine state efforts to mitigate global warming. Mary Peters, the Transportation Secretary at that time, personally directed US efforts to urge governors and dozens of members of the House of Representatives to block California's first-in-the-nation limits on greenhouse gases from cars and trucks, according to e-mails obtained by Congress.

Obama administration

New Energy for America is a plan to invest in renewable energy, reduce reliance on foreign oil, address the global climate crisis, and make coal a less competitive energy source. It was announced during Barack Obama's presidential campaign.

On November 17, 2008, President-elect Barack Obama proposed, in a talk recorded for YouTube, that the US should enter a cap and trade system to limit global warming. The American Clean Energy and Security Act, a cap and trade bill, was passed on June 26, 2009, in the House of Representatives, but was not passed by the Senate.

President Obama established a new office in the White House, the White House Office of Energy and Climate Change Policy, and selected Carol Browner as Assistant to the President for Energy and Climate Change. Browner is a former administrator of the U.S. Environmental Protection Agency (EPA) and was a principal of The Albright Group LLC, a firm that provides strategic advice to companies.

On January 27, 2009, Secretary of State Hillary Clinton appointed Todd Stern as the department's Special Envoy for Climate Change. Clinton said, "we are sending an unequivocal message that the United States will be energetic, focused, strategic and serious about addressing global climate change and the corollary issue of clean energy." Stern, who had coordinated global warming policy in the late 1990s under the Bill Clinton administration, said that "The time for denial, delay and dispute is over.... We can only meet the climate challenge with a response that is genuinely global. We will need to engage in vigorous, dramatic diplomacy."

In February 2009, Stern said that the US would take a lead role in the formulation of a new climate change treaty in Copenhagen in December 2009. He made no indication that the U.S. would ratify the Kyoto Protocol in the meantime. US Embassy dispatches subsequently released by whistleblowing site WikiLeaks showed how the US 'used spying, threats and promises of aid' to gain support for the Copenhagen Accord, under which its emissions pledge is the lowest by any leading nation.

President Obama said in September 2009 that if the international community would not act swiftly to deal with climate change that "we risk consigning future generations to an irreversible catastrophe... our prosperity, our health, and our safety are in jeopardy, and the time we have to reverse this tide is running out."  In 2010, the president said, similarly, that it was time for the United States "to aggressively accelerate" its transition from oil to alternative sources of energy and vowed to push for quick action on climate change legislation, arguably seeking to harness the deepening anger over the oil spill in the Gulf of Mexico.

The 2010 United States federal budget proposed to support clean energy development with a 10-year investment of US$15 billion per year, generated from the sale of greenhouse gas (GHG) emissions credits. Under the proposed cap-and-trade program, all GHG emissions credits would be auctioned off, generating an estimated $78.7 billion in additional revenue in FY 2012, steadily increasing to $83 billion by FY 2019.

New rules for power plants were proposed March 2012.

In US and China's Sunnylands Summit on June 8, 2013, President Obama and Chinese Communist Party leader Xi Jinping worked in accordance for the first time, formulating a landmark agreement to reduce both production and consumption of hydrofluorocarbons (HFCs). This agreement had the unofficial goal of decreasing roughly 90 gigatons of CO2 by 2050 and implementation was to be led by the institutions created under the Montreal Protocol, while progress was tracked using the reported emissions that were mandated under the Kyoto Protocol. The Obama administration viewed HFCs as a "serious climate mitigation concern."

On March 31, 2015, the Obama administration formally submitted the US Intended Nationally Determined Contribution (INDC) for greenhouse gas emissions (GHGs) to the United Nations Framework Convention on Climate Change (UNFCCC). According to the US submission, the United States committed to reducing emissions 26-28% below 2005 levels by 2025, a reflection of the Obama administration's goal to convert the U.S. economy into one of low-carbon reliance.

In 2015, Obama also announced the Clean Power Plan, which is the final version of regulations originally proposed by the EPA the previous year, and which pertains to carbon dioxide emissions from power plants.

In the same year, President Obama announced his aim for a 40-45% reduction below 2012 levels in Methane emissions by 2025. In March 2016, the President would later solidify this goal in an agreement with Prime Minister of Canada, Justin Trudeau, stating that the two federal governments will jointly work together to reduce methane emissions in North America. The nations released a joint statement outlining general methods and strategies to reach such goals within their respective jurisdictions. In adherence to this goal, the Environmental Protection Agency (EPA) would take on the responsibility in regulating methane emissions, requiring information from big-time methane emitting industries. Emission information from these industries would be used in the promotion of research and development for methane reduction, formulating differentiated standards and cost-effective policies. The United States and Canada will jointly exchange any progress in research and development for optimal efficiency, while practicing transparency in regards to their respective progress with each other and the rest of North America, continuing to strengthen the bond with Mexico.

On May 12, 2016, after three public hearings and a review of public comments, the administration released an Information Collection Request (ICR), requiring all methane emitting operations to provide reports of their levels of emissions for EPA analysis so that policies could begin to be formulated and high emitting sources could be identified. New Source Performance Standards (NSPS) were implemented, building off previous requirements to reduce VOC (a byproduct of methane) emissions. The new standards set emission limits for methane; reductions were to be made through transition to newer and cleaner production equipment, fixed monitoring of leaks at operation sites using innovative techniques, and the capturing of emissions from hydraulic fracturing. More specifically, well sites, regardless of size or operation, were to be checked for leaks at least twice a year, while compressor stations were required to monitor every quarter. Owners and operators can make these observances one of two ways, either through optical gas imaging, the use of a portable monitoring instrument, or the use of an approved innovated strategy. Once these checks are made, mandatory surveys must be submitted no later than a year after final results are gathered. Additionally, "green completion" requirements, regarding the process for seizing emissions from hydraulically fractured oil wells, were outlined for owners of oil wells.

A September 2016 study from Lawrence Berkeley National Laboratory analyses a set of definite and proposed climate change policies for the United States and finds that these are just insufficient to meet the US intended nationally determined contribution (INDC) under the 2015/2016 Paris Agreement. Additional greenhouse gas reduction measures will probably be required to meet this international commitment. These additional reduction measures will soon have to be decided on in order to start complying with the agreement's "below 2 degrees" goal, and countries may have to be more proactive than previously thought.

An October 2016 report compares US government spending on climate security and military security and finds the latter to be 28 × greater. The report estimates that public sector spending of $55 billion is needed to tackle climate change. The 2017 national budget contains $21 billion for such expenditures, leaving a shortfall of $34 billion that could be recouped by scrapping underperforming weapons programs. The report nominates the F-35 fighter and close-to-shore combat ship projects as possible targets.

Transportation

President's 21st century clean transportation plan

In June 2015, the Obama administration released the President's 21st Century Clean Transportation Plan with the goal of reducing carbon pollution by converting the nation's century old infrastructure into one based on clean energy. This plan intended to battle climate change by reducing emissions through a switch to more sustainable forms of transportation, resulting from a potential increase of innovation in both public transit and electric vehicle production in the United States. The President stated that the revitalization of the infrastructure would not only create jobs, but also allow for quicker deliveries of goods, and allow for a greater variety of transportation options that would facilitate travel for Americans. The President's multibillion-dollar proposal provided incentives to reduce reliance on international oil and fossil fuels.

This plan fundamentally relied on an increase in investment into sustainable transportation, Previously, such investment into transportation was supported by the Fixing America's Surface Transportation Act (FAST), an act passed in December 2015 by the Obama administration. FAST was formulated to reduce traffic and increase the quality of air by reducing emissions, yet this act proved to be slow in gathering infrastructure investments. Thus, the President proposed a tax on oil, a gradual $10 per barrel, in order to subsidize this plan to improve infrastructure and further drive down the incentive to consume large quantities of oil, possibly furthering the urge to switch to more sustainable forms of transportation. Ultimately, this plan did not appeal to GOP leaders and as a result it was never enacted; the act was denied funding in the House of Representatives by U.S. Congressman Paul A. Gosar and his Republican coalition, enacting their fundamental "power of the purse."

Climate action plan progress report

In June 2015, under Obama's Climate Action Plan Progress Report, the EPA announced that they were going to propose new standards for both medium and heavy-duty engines and vehicles, building off standards that were already enacted. These proposals were projected to decrease emissions by 270 million metric tons and save vehicle owners around $50 billion in fuel costs.

The Climate Action Plan progress report also addressed air craft, transit, and maritime emissions. The EPA released an Advanced Notice of Proposed Rulemaking, increasing transparency around the plans of the International Civil Aviation Organization (ICAO) in tightening carbon pollution standards. Additionally, under the Next Generation Transportation System (NextGen), the Federal Aviation Administration has worked jointly with the aviation industry in formulating technology that supports a reduction in emissions and increase in fuel efficiency. With respect to maritime emissions, the Obama administration oversaw, in cooperation with the Maritime Administration, the increase of investments into more fuel-efficient ships, finalizing the creation of two ships that have been used in the Puerto-Rico to Jacksonville route. Similar investments were pumped into transit, which made it possible for buses and other forms of transit to switch to other forms of energy such as natural gas and electric.

Model year 2012-2016 standards and model year 2017-2025 standards

In April 2010, the Environmental Protection Agency (EPA) and the Department of Transportation's National Highway Traffic Safety Administration (NHTSA) formulated a national program that would finalize new standards for model year 2012 through 2016 passenger cars, light-duty trucks, and medium duty passenger vehicles. With these new standards, vehicles were required to meet an average emissions level of 250 grams of carbon dioxide per mile by model year 2016. This was the first time the EPA had taken measures to regulate vehicular GHG emissions under the Clean Air Act. Additionally, the administration established Corporate Average Fuel Economy (CAFE) standards under the Energy Policy and Conservation Act.

In August 2012, the administration expanded on these standards for model years 2017 through 2025 vehicles, issuing final rules and standards that were to result in a 163 gram emission per mile by model year 2025.

Trump administration

It’ll start getting cooler. You just watch. ...
I don’t think science knows, actually.

—Donald Trump, on climate change
September 13, 2020

During his campaign, Donald Trump promised to roll back some of the Obama-era regulations enacted with the purpose of combating climate change. He questioned the existence of climate change and stated that efforts to curb fossil fuel emissions could harm the United States' global competitiveness. He pledged to roll back regulations placed on the oil and gas industry by the EPA under the Obama administration in order to boost the productivity of both industries.

As president, Trump withdrew the U.S. from the Paris Climate Agreement, a major international convention to address climate change.

Appointment of energy industry-affiliated officials

As president, Trump appointed Scott Pruitt, a climate change denialist with a history of close ties to energy industry interests, to head the EPA. While serving as Attorney General of Oklahoma, Pruitt removed Oklahoma's environmental protection unit and sued the EPA a total of fourteen times, thirteen of which involved "industry players" as co-parties. He was confirmed to head the EPA on February 17, 2017 with a 52–46 vote and resigned on July 5, 2018 amid ethics violation controversies. Trump then nominated Andrew Wheeler, an attorney who worked as a coal lobbyist, who was confirmed as head of the EPA on February 28, 2019 by a 52–47 vote.

Trump nominated Rex W. Tillerson, the former CEO and chairman of Exxon Mobil, the multinational oil and gas giant, as Secretary of State. His nomination was confirmed on February 1, 2017, by a 56–43 vote. He was fired on March 31, 2018, and replaced by Mike Pompeo.

Pipeline expansion and attempts at major cuts to EPA

After less than a week as president, on January 24, 2017, Trump issued an executive order that removed barriers from the Keystone XL and Dakota Access Pipelines, making it easier for the companies sponsoring them to continue with production. On March 28, 2017, President Trump signed an executive order aimed towards boosting the coal industry. The executive order rolls back on Obama-era climate regulations on the coal industry in order to grow the coal sector and create new American jobs. The White House has indicated that any climate change policies that they deem hinder the growth of American jobs will not be pursued. In addition, the executive order rolls back on six Obama-made orders aimed at reducing climate change and carbon dioxide emissions and calls for a review of the Clean Power Plan.

Suppression and politicization of climate science

In his first year in office, President Trump ordered the Environmental Protection Agency to remove references to climate change from its website, suppressed government publication of scientific reports showing the threat of climate change and the effectiveness of renewable energy, and politicized decisions made at the EPA. In a similar vein, the Trump Administration prevented scientists from reporting to Congress regarding the threat of climate change and the urgent need to address it. However, buried inside a 500-page Environmental Impact Statement (EIP) published by the National Highway Traffic Safety Administration, the Trump administration acknowledged that, without a course correction, the planet is on track for global average temperature warming by approximately four degrees Celsius by the end of the century, compared with preindustrial levels. Such warming would be catastrophic for organized human life, according to scientists. The EIP supports the U.S. government's decision to maintain without increase fuel-efficiency standards for cars and other vehicles.

In his budget proposal for 2018, President Trump proposed cutting the EPA's budget by 31% (reducing its current $8.2 billion to $5.7 billion). Had it passed, it would have been the lowest EPA budget in 40 years adjusted for inflation, but Congress did not approve it. Trump tried again unsuccessfully in his budget proposal for 2019 to cut EPA funding by 26%. The EPA provides technical assistance to cities as they update their infrastructure to adapt to climate change, according to Joel Scheraga, the EPA senior advisor for climate change adaptation who has worked for the EPA for three decades. Scheraga said he was working with a reduced staff under the Trump administration.

Environmental justice

The shift in direction of environmental policy in the United States under the Trump administration has led to a change in the environmental justice sector. On March 9, 2017, Mustafa Ali, a leader of the environmental justice office at EPA, resigned over proposed cuts to the agency's environmental justice program. The preliminary budget proposals would cut the environmental justice office's budget by 1/4, causing a 20% reduction in its workforce. The program is one of a dozen vulnerable to losing all governmental funding.

Biden administration

Since taking office in 2021, the Biden administration paused construction of the Keystone XL Pipeline in addition to other actions on climate change, such as creating a National Climate Task Force and pausing oil and gas leases on public lands. Under Biden, the United States re-joined the Paris Agreement. His administration proposed spending on climate change in his infrastructure bill, including $174 billion for electric cars and $35 billion for research and development in climate-focused technology.

In June 2021 the project, Keystone XL, considered by some as dangerous for climate, was cancelled, following strong objection from environmentalists, indigenous peoples, the Democratic Party, and the Joe Biden administration. Biden's goals in developing a federal climate change policy were hampered by the Supreme Court ruling in West Virginia v. EPA, where the court ruled against the EPA's ability to regulate greenhouse gas emissions.

On 21 September 2021, President Joe Biden stated at the UN General Assembly that he would work with Congress to double funds by 2024 to $11.4 billion per year. The plan aimed at helping the developing nations deal with climate change.

The Inflation Reduction Act of 2022 is the largest investment in climate change mitigation in US history. The Act sets out provisions to invest in increasing renewable energy and electrifying areas of the US economy. The bill, passing by a 51-50 vote in the Senate, explicitly defined carbon dioxide as an air pollutant under the Clean Air Act to make the Act's EPA enforcement provisions harder to challenge in court.

State and local policy

Map of states and regions and Climate Registry status, 2008
  RGGI Members
  RGGI Observers
  WRCAI Members
  WRCAI Observers
  MGGRA Members
  MGGRA Observers
  Unaffiliated Registry Participants

Across the country, regional organizations, states, and cities are achieving real emissions reductions and gaining valuable policy experience as they take action on climate change. These actions include increasing renewable energy generation, selling agricultural carbon sequestration credits, and encouraging efficient energy use. The U.S. Climate Change Science Program is a joint program of over twenty U.S. cabinet departments and federal agencies, all working together to investigate climate change. In June 2008, a report issued by the program stated that weather would become more extreme, due to climate change.

As described in a 2007 brief by the PEW Center on Global Climate Change, "States and municipalities often function as "policy laboratories", developing initiatives that serve as models for federal action. This has been especially true with environmental regulation—most federal environmental laws have been based on state models. In addition, state actions can have a significant impact on emissions, because many individual states emit high levels of greenhouse gases. Texas, for example, emits more than France, while California's emissions exceed those of Brazil."

City and state governments often act as liaisons to the business sector, working with stakeholders to meet standards and increase alignment with city and state goals. This section will provide an overview of major statewide climate change policies as well as regional initiatives.

Arizona

On September 8, 2006, Arizona Governor Janet Napolitano signed an executive order calling on the state to create initiatives to cut greenhouse gas emissions to the 2000 level by the year 2020 and to 50 percent below the 2000 level by 2040.

California

California (the world's fifth largest economy) has long been seen as the state-level pioneer in environmental issues related to global warming and has shown some leadership in the last four years. On July 22, 2002, Governor Gray Davis approved AB 1493, a bill directing the California Air Resources Board to develop standards to achieve the maximum feasible and cost-effective reduction of greenhouse gases from motor vehicles. Now the California Vehicle Global Warming law, it requires automakers to reduce emissions by 30% by 2016. Although it has been challenged in the courts by the automakers, support for the law is growing as other states have adopted similar legislation. On September 7, 2002, Governor Davis approved a bill requiring the California Climate Action Registry to adopt procedures and protocols for project reporting and carbon sequestration in forests. (SB 812. Approved by Governor Davis on September 7, 2002) California has convened an interagency task force, housed at the California Energy Commission, to develop these procedures and protocols. Staff are currently seeking input on a host of technical questions.

In June 2005, Governor Arnold Schwarzenegger signed an executive order calling for the following reductions in state greenhouse gas emissions: to reduce GHG emissions to 2000 levels by 2010, to reduce GHG emissions to 1990 levels by 2020, to reduce GHG emissions to 80 percent below 1990 levels by 2050. Measures to meet these targets include tighter automotive emissions standards, and requirements for renewable energy as a proportion of electricity production. The Union of Concerned Scientists has calculated that by 2020, drivers would save $26 billion per year if California's automotive standards were implemented nationally.

On August 30, 2006, Schwarzenegger and the California Legislature reached an agreement on AB32, the Global Warming Solutions Act. He signed the bill into law on September 27, 2006, saying, "We simply must do everything we can in our power to slow down global warming before it is too late... The science is clear. The global warming debate is over." The Act caps California's greenhouse gas emissions at 1990 levels by 2020, and institutes a mandatory emissions reporting system to monitor compliance, representing the first enforceable statewide program in the U.S. to cap all GHG emissions from major industries that includes penalties for non-compliance. It required the State Air Resources Board to establish a program for statewide greenhouse gas emissions reporting and to monitor and enforce compliance with this program, authorizes the state board to adopt market-based compliance mechanisms including cap-and-trade, and allows a one-year extension of the targets under extraordinary circumstances. Thus far, flexible mechanisms in the form of project based offsets have been suggested for five main project types. A carbon project would create offsets by showing that it has reduced carbon dioxide and equivalent gases. The project types include: manure management, forestry, building energy, SF6, and landfill gas capture.

Additionally, on September 26 Governor Schwarzenegger signed SB 107, which requires California's three major biggest utilities – Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric – to produce at least 20% of their electricity using renewable sources by 2010. This shortens the time span originally enacted by Gov. Davis in September 2002 to increase utility renewable energy sales 1% annually to 20% by 2017.

Gov. Schwarzenegger also announced he would seek to work with Prime Minister Tony Blair of Great Britain, and various other international efforts to address global warming, independently of the federal government.

Connecticut

The state of Connecticut passed a number of bills on global warming in the early to mid 1990s, including—in 1990—the first state global warming law to require specific actions for reducing CO2. Connecticut is one of the states that agreed, under the auspices of the New England Governors and Eastern Canadian Premiers (NEG/ECP), to a voluntary short-term goal of reducing regional greenhouse gas emissions to 1990 levels by 2010 and by 10 percent below 1990 levels by 2020. The NEG/ECP long-term goal is to reduce emissions to a level that eliminates any dangerous threats to the climate—a goal scientists suggest will require reductions 75 to 85 percent below current levels. These goals were announced in August 2001. The state has also acted to require additions in renewable electric generation by 2009.

Maryland

Maryland began a partnership with the Center for Climate and Energy Solutions (C2ES) in 2015 to research impacts and solutions to climate change called the Maryland Climate Change Commission.

New York

In August 2009, Governor David Paterson created the New York State Climate Action Council (NYSCAC) and tasked them with creating a direct action plan. In 2010, the NYSCAC released a 428-page Interim Report which outlined a plan to reduce emissions and highlighted the impact climate change will have in the future. In 2010, the New York State Energy Research and Development Authority also commissioned a report about statewide climate change impacts, later published in November 2011. After Hurricanes Sandy and Irene along with Tropical Storm Lee, the state updated vulnerability in regards to the condition of its critical infrastructure.

A snapshot of the destruction caused by Hurricane Sandy, which flooded coastlines and forced many residents to flee for safety. Houses and critical infrastructure were destroyed.

According to the 2015 New York State Energy Plan, renewable sources, which include wind, hydropower, solar, geothermal, and sustainable biomass, have the potential to meet 40 percent of the state's energy needs by 2030. As of 2018, sustainable energy use comprises 11 percent of all energy usage. The New York State Energy Research and Development Authority offers incentives in the form of grants and loans to its residents to adopt renewable energy technologies and create renewable energy businesses.

Other state climate change mitigation laws have gone into effect. The net metering laws make it easier for both residents and businesses to use solar power by feeding unused energy back into electrical fields and receive credit from their power suppliers. Although one version was released in 1997, it was exclusively limited to residential systems using up to 10 kilowatts of power. However, on June 1, 2011, the laws were expanded to include farm and non-residential buildings. The Renewable Energy Portfolio Standard set a statewide target for renewable energy and offered incentives to residents to use the new technologies.

In June 2018, the state announced its first major update in over two decades to its Environmental Quality Review (EQR) regulations. The update involves streamlining the environmental review process and encouraging renewable energy. It also expanded the Type II actions, or "list of actions not subject to further review", including green infrastructure upgrades and retrofits. Furthermore, solar arrays are set to be installed in sites like brownfields, wastewater treatment facilities, and land zoned for industry. The regulations will take effect on January 1, 2019.

New York State Energy Plan

In 2014, Governor Andrew Cuomo enforced the state's hallmark energy policy, Reforming the Energy Vision. This involves building a new network that will connect the central grid with clean, locally generated power. The method for this undertaking falls to the Energy Plan, a comprehensive plan to build a clean, resilient, affordable energy system for all New Yorkers. It will foster "economic prosperity and environmental stewardship" and cooperation between government and industry. Concrete goals thus far include a 40 percent reduction in greenhouse gas from 1990 levels, electricity sourced from 50 percent of renewable energy sources, and a 600 billion Btu increase in statewide energy efficiency.

Regional initiatives

Clean Energy Standards

Clean Energy Standard (CES) policies are policies which favor lowering non-renewable energy emissions and increasing renewable energy use. They are helping to drive the transition to cleaner energy, by building upon existing energy portfolio standards, and could be applied broadly at the federal level and developed more acutely at the regional and state levels. CES policies have had success at the federal level, gaining bipartisan support during the Obama administration. Iowa was the first state to adopt CES policies, and now a majority of states have adopted CES policies. Similar to CES policies, Renewable Portfolio Standards (RPS) are standards set in place to ensure a greater integration of renewable energies in state and regional energy portfolios. Both CES and RPS are helping increase the use of clean and renewable energies in the United States.

Regional Greenhouse Gas Initiative

In 2003, New York State proposed and attained commitments from nine Northeast states to form a cap and trade carbon dioxide emissions program for power generators, called the Regional Greenhouse Gas Initiative (RGGI). This program launched on January 1, 2009 with the aim to reduce the carbon "budget" of each state's electricity generation sector to 10 percent below their 2009 allowances by 2018. 11 Northeastern US states are involved in the Regional Greenhouse Gas Initiative. It is believed that the state-level program will apply pressure on the federal government to support Kyoto Protocol. The Regional Greenhouse Gas Initiative (RGGI) is a cap and trade system for CO2 emissions from power plants in the member states. Emission permit auctioning began in September 2008, and the first three-year compliance period began on January 1, 2009. Proceeds will be used to promote energy conservation and renewable energy. The system affects fossil fuel power plants with 25 MW or greater generating capacity ("compliance entities"). Since 2005, the participating states have collectively seen an over 45% reduction in greenhouse gas emissions by RGGI-affected power plants. This has resulted in cleaner air, better health, and economic growth.

Western Climate Initiative

Western Climate Initiative members, 2008

Since February 2007, seven U.S. states and four Canadian provinces have joined to create the Western Climate Initiative, a regional greenhouse gas emissions trading system. The Initiative was created when the West Coast Global Warming Initiative (California, Oregon, and Washington) and the Southwest Climate Change Initiative (Arizona and New Mexico) joined efforts with Utah and Montana, along with British Columbia, Manitoba, Ontario, and Quebec.

The nonprofit organization WCI, Inc., was established in 2011 and supports implementation of state and regional greenhouse gas trading programs.

Powering the Plains Initiative

The Powering the Plains Initiative (PPI) began in 2001 and aims to expand alternative energy technologies and improve climate-friendly agricultural practices. Its most significant accomplishment was a 50-year energy transition roadmap for the upper Midwest, released in June 2007.

  • Participating states: Iowa, Minnesota, Wisconsin, North Dakota, South Dakota, Canadian Province of Manitoba

Litigation by states

Several lawsuits have been filed over global warming. In 2007 the Supreme Court of the United States ruled in Massachusetts v. Environmental Protection Agency that the Clean Air Act gives the United States Environmental Protection Agency (EPA) the authority to regulate greenhouse gases, such as tailpipe emissions. A similar approach was taken by California Attorney General Bill Lockyer who filed a lawsuit California v. General Motors Corp. to force car manufacturers to reduce vehicles' emissions of carbon dioxide. A third case, Comer v. Murphy Oil, was filed by Gerald Maples, a trial attorney in Mississippi, in an effort to force fossil fuel and chemical companies to pay for damages caused by global warming.

In June 2011, the United States Supreme Court overturned 8–0 a U.S. appeals court ruling against five big power utility companies, brought by U.S. states, New York City, and land trusts, attempting to force cuts in United States greenhouse gas emissions regarding global warming. The decision gives deference to reasonable interpretations of the United States Clean Air Act by the Environmental Protection Agency.

Position of political parties and other political organizations

In the United States, Democrats (blue) and Republicans (red) have long differed in views of the importance of addressing climate change, with the gap widening in the late 2010s mainly through Democrats' share increasing by more than 30 points.
 
The sharp divide over the existence of and responsibility for global warming and climate change falls largely along political lines. Overall, 60% of Americans surveyed said oil and gas companies were "completely or mostly responsible" for climate change.
 
Opinion about human causation of climate change increased substantially with education among Democrats, but not among Republicans. Conversely, opinions favoring becoming carbon neutral declined substantially with age among Republicans, but not among Democrats.
 
National political divides on the seriousness of climate change consistently correlate with political ideology, with right-wing opinion being more negative.

In the 2016 presidential campaigns, the two major parties established different positions on the issue of global warming and climate change policy. The Democratic Party seeks to develop policies which curb negative effects from climate change. The Republican Party, whose leading members have frequently denied the existence of global warming, continues to meet its party goals of expanding the energy industries and curbing the efforts of Environmental Protection Agency (EPA). Other parties, including the Green Party, the Libertarian Party, and the Constitution Party possess various views of climate change and mostly maintain their parties' own long-standing positions to influence their party members.

Democratic Party

In its 2016 platform, the Democratic Party views climate change as "an urgent threat and a defining challenge of our time." Democrats are dedicated to "curbing the effects of climate change, protecting America's natural resources, and ensuring the quality of our air, water, and land for current and future generations."

With respect to climate change, the Democratic Party believes that "carbon dioxide, methane, and other greenhouse gasses should be priced to reflect their negative externalities, and to accelerate the transition to a clean energy economy and help meet our climate goals." Democrats are also committed to "implementing, and extending smart pollution and efficiency standards, including the Clean Power Plan, fuel economy standards for automobiles and heavy-duty vehicles, building codes and appliance standards."

Democrats emphasize the importance of environmental justice. The party calls attention to the environmental racism as the climate change has disproportionately impacted low-income and minority communities, tribal nations and Alaska Native villages. The party believes "clean air and clean water are basic rights of all Americans."

Republican Party

The Republican Party has varied views on climate change. The most recent 2016 Republican Platform denies the existence of climate change and dismisses scientists’ efforts of easing global warming.

The GOP does champion some energy initiatives following: opening up public lands and the ocean for further oil exploration; fast tracking permits for oil and gas wells; and hydraulic fracturing. It also supports dropping "restrictions to allow responsible development of nuclear energy."

In 2014, President Barack Obama proposed a series of Environmental Protection Agency (EPA) regulations, known as the Clean Power Plan that would reduce carbon pollution from coal-fired power plants. The Republican Party has viewed these efforts as a "war on coal" and has significantly opposed them. Instead, it advocates building the Keystone XL pipeline, outlawing a carbon tax, and stopping all fracking regulations.

Donald Trump, the former President of the United States, has said that "climate change is a hoax invented by and for Chinese." During his political campaign, he blamed China for doing little helping the environment on the earth, but he seemed to ignore many projects organized by China to slow global warming. While Trump's words might be counted as his campaign strategy to attract voters, it brought concerns from the left about environmental justice.

From 2008 to 2017, the Republican Party went from "debating how to combat human-caused climate change to arguing that it does not exist," according to The New York Times. In 2011 "more than half of the Republicans in the House and three-quarters of Republican senators" said "that the threat of global warming, as a man-made and highly threatening phenomenon, is at best an exaggeration and at worst an utter 'hoax'", according to Judith Warner writing The New York Times Magazine. In 2014, more than 55% of congressional Republicans were climate change deniers, according to NBC News. According to PolitiFact in May 2014, "...relatively few Republican members of Congress...accept the prevailing scientific conclusion that global warming is both real and man-made...eight out of 278, or about 3 percent." A 2017 study by the Center for American Progress Action Fund of climate change denial in the United States Congress found 180 members who deny the science behind climate change; all were Republicans.

However, many Republicans see ways to address the issue of climate change using conservative principles. In 2019, Luntz Global released polling indicating that a majority of Republican voters would support government action on emissions reduction, and worry the GOP's position on climate hurts its standing within young voting blocs. Also in 2019, several Republican legislators broke with the party to advocate taking action on climate change, with market-based solutions rather than traditional regulations. Additionally, groups of younger Republicans began advocacy efforts in favor of a climate policy response, such as Citizens for Responsible Energy Solutions and Young Conservatives For Carbon Dividends (YCCD). republicEn.org is a conservative non-profit in support of a national, revenue-neutral carbon tax.

By 2022, a group of Republican state treasurers had formed which actively opposed private sector climate initiatives. The group also raised objections to government appointments and regulations due to climate-related issues.

Green Party

The Green Party of the United States advocates for reductions of greenhouse gas emissions and increased government regulation.

In 2010 Platform on Climate Change, the Green Party leaders released their proposal to solve and integrate the problem and policy of climate change with six parts. First, Greens (the members of the Green Party) want a stronger international climate treaty to decrease greenhouse gases at least 40% by 2020 and 95% by 2050. Second, Greens advocate economic policies to create a safer atmosphere. The economic policies include setting carbon taxes on fossil fuels, removing subsidies for fossil fuels, nuclear power, biomass and waste incineration, and biofuels, and preventing corrupt actions from the rise of carbon prices. Third, countries with few contributions should pay for adaption to climate change. Fourth, Greens champion more efficient but low-cost public transportation system and less energy demand economy. Fifth, the government should train more workers to operate and develop the new, green energy economy. Last, Greens think necessary to transform commercial plants where have uncontrolled animal feeding operations and overuse of fossil fuel to health farms with organic practices.

Libertarian Party

In its 2016 platform, the Libertarian Party states that "competitive free markets and property rights stimulate the technological innovations and behavioral changes required to protect our environment and ecosystems." The Libertarians believe the government has no rights or responsibilities to regulate and control the environmental issues. The environment and natural resources belong to the individuals and private corporations.

Constitution Party

The Constitution Party, in the 2014 Platform, states that "it is our responsibility to be prudent, productive, and efficient stewards of God's natural resources." On the issue of global warming, it says that "globalists are using the global warming threat to gain more control via worldwide sustainable development." According to the party, eminent domain is unlawful because "under no circumstances may the federal government take private property, by means of rules and regulations which preclude or substantially reduce the productive use of the property, even with just compensation."

In regards to energy, the party calls attention to "the continuing need of the United States for a sufficient supply of energy for national security and for the immediate adoption of a policy of free market solutions to achieve energy independence for the United States," and calls for the "repeal of federal environmental protections." The party also advocates the abolition of the Department of Energy.

Nebraska Farmers Union

In September 2019, the Nebraska Farmers Union called for "more government action on climate change." The organization wants better agricultural research that develops tools for increasing carbon sequestration in soils, and increased participation by government at state and national levels.

Climate justice

Per person, the United States generates carbon dioxide at a far faster rate than other primary regions.

Climate justice is part of environmental justice, which EPA defines as: "The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income, with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies."

Poor and disempowered groups often do not have the resources to prepare for, cope with or recover from climate disasters such as droughts, floods, heat waves, hurricanes, etc. This occurs not only within the United States but also between rich nations, who predominantly create the problem of climate change by dumping greenhouse gases into the atmosphere, and poor nations who have to deal more heavily with the consequences.

State and regional policies

States and local governments are often tasked with defense against climate change affecting areas and peoples under state and local jurisdiction.

Mayors National Climate Action Agenda

The Mayors National Climate Action Agenda was founded by Los Angeles mayor Eric Garcetti, former Houston mayor Annise Parker, and former Philadelphia mayor Michael Nutter in 2014. The MNCAA aims to bring climate change policy into the hands of local government and to make federal climate change policies more accountable.

As a part of MNCAA, 75 mayors from across the United States, known as the "Climate Mayors", wrote to President Trump on March 28, 2017, in opposition to proposed rollbacks of several major climate change departments and initiatives. They maintain that the federal government should continue to build up climate change policies, stating "we are also standing up for our constituents and all Americans harmed by climate change, including those most vulnerable among us: coastal residents confronting erosion and sea level rise; young and old alike suffering from worsening air pollution and at risk during heatwaves; mountain residents engulfed by wildfires; farmers struggling at harvest time due to drought; and communities across our nation challenged by extreme weather." Climate Mayors currently has over 400 cities involved in the network. Their current key initiative is the Electric Vehicle Request for Information (EV RFI). They have also produced responses to the announcement of the plan for the United States to withdraw from the Paris Agreement and opposition to the proposed repeal of the Clean Power Plan.

United States Climate Alliance

The United States Climate Alliance is a group of states committed to meeting the Paris Agreement emissions targets despite President Trump's announced withdrawal from the agreement. Currently, there are 22 states that are members of this network. This network is a bipartisan network of governors across the United States and is governed by three core principles: "States are continuing to lead on climate change", "State-level climate action is benefiting our economies and strengthening our communities", "States are showing the nation and the world that ambitious climate action is achievable." Their current initiatives include green banks, grid modernizations, solar soft costs, short-lived climate pollutants, natural and working lands, climate resilience, international cooperation, clean transportation, and improving data and tools.

California

The California Global Warming Solutions Act of 2006 (commonly known as AB 32) mandates a reduction in greenhouse gas emissions to 1990 levels by the year 2020. The Environmental Defense Fund and the Air Resources Board recruited staffers with environmental justice expertise as well as community leaders in order to appease environmental justice groups and ensure the safe passage of the bill.

The environmental justice groups who worked on AB 32 strongly opposed cap and trade programs being made mandatory. A cap and trade plan was put in place, and a 2016 study by a group of California academics found that carbon offsets under the plan were not used to benefit people in California who lived near power plants, who are mostly less well off than people who live far from them.

Regional

Twenty-eight states have climate action plans and nine have statewide emission targets. The states of California and New Mexico have committed most recently to emission reductions targets, joining New Jersey, Maine, Massachusetts, Connecticut, New York, Washington and Oregon.

Regional initiatives can be more efficient than programs at the state level, as they encompass a broader geographical area, eliminate duplication of work, and create more uniform regulatory environments. Over the past few years, a number of regional initiatives have begun developing systems to reduce carbon dioxide emissions from power plants, increase renewable energy generation, track renewable energy credits, and research and establish baselines for carbon sequestration.

State initiatives

Regional Greenhouse Gas Initiative

In December 2005, the governors of seven Northeastern and Mid-Atlantic states agreed to the Regional Greenhouse Gas Initiative (RGGI), a cap and trade system covering carbon dioxide (CO2) emissions from regional power plants. Currently (at the time of this edit), Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont have signed, and Maryland Governor Robert Ehrlich signed legislation in March 2006 that commits Maryland to join RGGI by 2007. To facilitate compliance with reduction targets, RGGI will provide flexibility mechanisms that include credits for emissions reductions achieved outside of the electricity sector. The successful implementation of the RGGI model will set the stage for other states to join or form their own regional cap and trade systems and may encourage the program to expand to other greenhouse gases and other sectors. RGGI states, along with Pennsylvania, Massachusetts, and Rhode Island, are also developing a GHG registry called the Eastern Climate Registry.

On November 29, 2011, New Jersey withdrew from the initiative, effective January 1, 2012. Groups such as Acadia Center have since reported on lost revenue resulting from New Jersey's departure, and argued for renewed participation.

After the election of Ralph Northam in the 2017 Virginia gubernatorial election and Phil Murphy in the 2017 New Jersey gubernatorial election, New Jersey and Virginia began to make preliminary moves to join RGGI.

The Western Governors' Association

The Western Governors' Association (WGA) Clean and Diversified Energy Initiative, including 18 western states, has begun investigating strategies to increase efficiency and renewable energy sources in their electricity systems. Governors Richardson (NM), Schwarzenegger (CA), Freudenthal (WY) & Hoeven (ND) serve as lead Governors on this initiative. To meet its goals, the Initiative's advisory committee (CDEAC) appointed eight technical task forces to develop recommendations based on reviews of specific clean energy and efficiency options. The CDEAC made final recommendations to the Western Governors' Association on June 11, 2006. Additionally, the WGA and the California Energy Commission are creating the Western Renewable Energy Generation Information State (WREGIS). WREGIS is a voluntary system for renewable energy credits and tracks renewable energy credits (RECs) across 11 western states in order to facilitate trading to meet renewable energy portfolio standards.

Other initiatives

As of 2020, several states in the northeastern United States were discussing a regional cap and trade system for carbon emissions from motor vehicle fuel sources, called the Transportation Climate Initiative. In 2021, Massachusetts withdrew citing as one of the reasons that it was no longer necessary.

The governors of Arizona and New Mexico signed an agreement to create the Southwest Climate Change Initiative in February 2006. The two states collaborated to assess greenhouse gas emissions and address the impacts of climate change in the Southwest and on September 8, 2006, Arizona Governor Janet Napolitano issued an executive order to implement recommendations included in the Climate Change Advisory Group's Climate Action Plan. The West Coast states—Washington, Oregon, and California—are cooperating on a strategy to reduce GHG emissions, known as the Western Coast Governors' Global Warming Initiative. Finally, on February 26, 2007, these five Western states (Washington, Oregon, California, Arizona, and New Mexico) agreed to combine their efforts to develop regional targets for reducing greenhouse emissions, creating the Western Regional Climate Action Initiative.

In 2001 six New England states committed to the New England Governors and Eastern Canadian Premiers (NEG-ECP) Climate Change Action Plan 2001, including short and long-term GHG emission reduction goals. Powering the Plains, launched in 2002, is a regional effort involving participants from the Dakotas, Minnesota, Iowa, Wisconsin and the Canadian Province of Manitoba. This initiative aims to develop strategies, policies, and demonstration projects for alternative energy sources and technology and climate-friendly agricultural development.

Municipal initiatives

ICLEI

In 1993, at the invitation of ICLEI, municipal leaders met at the United Nations in New York and adopted a declaration that called for the establishment of a worldwide movement of local governments to reduce greenhouse gas emissions, improve air quality, and enhance urban sustainability. The result was the Cities for Climate Protection (CCP) Campaign. Since its inception, the CCP Campaign has grown to involve more than 650 local governments worldwide that are integrating climate change mitigation into their decision-making processes.

U.S. Mayors' Climate Protection Agreement

On February 16, 2005, Seattle Mayor Greg Nickels launched an initiative to advance the goals of the Kyoto Protocol through leadership and action by at least 141 American cities, and as of October, 2006, 319 mayors representing over 51.4 million Americans had accepted the challenge. Under the terms of the Mayors Climate Protection Center, cities must commit to three actions in striving to meet the Kyoto Protocol in their own communities. These actions include:

  • Strive to meet or beat the Kyoto Protocol targets in their own communities, through actions ranging from anti-sprawl land-use policies to urban forest restoration projects to public information campaigns;
  • Urge their state governments, and the federal government, to enact policies and programs to meet or beat the greenhouse gas emission reduction target suggested for the United States in the Kyoto Protocol—7% reduction from 1990 levels by 2012; and
  • Urge the U.S. Congress to pass the bipartisan greenhouse gas reduction legislation, which would establish a national emission trading system.

Liquefied petroleum gas

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