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Coal production and power generation has driven Ningxia’s economy over the past decade. However, as an extremely thirsty industry, coal has put more stress on the area’s water supply and heightened competition with other users, including farms and households. A WRI working paper recommends developing a coordinated system to ensure sustainable development of water and economy in Ningxia.

Christine Lagarde, Managing Director of the IMF, recently launched the latest book in a series on what good fiscal policy should look like in a world of environmental externalities.

The message was clear: Ministers of finance and economics should design their tax systems skillfully so as to tax bad things, like pollution and congestion, rather than good things like work and profit. Not to do so is plain, bad economics.

A new report from the International Monetary Fund (IMF), Getting Energy Prices Right: From Principle to Practice, argues that the costs of coal, natural gas, gasoline, and diesel fail to account for these fuels’ environmental and social impacts—such as greenhouse gas emissions, air pollution, and traffic deaths.

Setting prices that reflect these side effects—through taxes, licensing, or cap-and-trade systems—could reduce deaths from fossil fuel-related air pollution by 63 percent, decrease global carbon dioxide emissions by 23 percent, and generate revenues totaling about 2.6 percent of global GDP.

The EPA's proposed rule to cut carbon pollution from power plants is a critical step in avoiding the worst consequences of global warming. Without significant reductions from the power sector—America’s largest source of greenhouse gas emissions—the country cannot meet its goal of reducing its emissions 17 percent below 2005 levels by 2020. EPA’s proposal provides a flexible framework that puts those reductions within reach.

Here’s a look at how the proposed rule would impact states and the future of U.S. climate action.


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