The city of Houston’s budget is at a tipping point. For five consecutive years, the city outspent its revenues by $100–$200 million each year. With stop-gap options drying up, city officials must plot out a more sustainable plan for the longer term. How did Houston find itself in this budgetary bind, and where must city officials go from here?
As more and more Texans switch from gas- to battery-powered vehicles, state policymakers are grappling with the implications of broader electric vehicle ownership. From infrastructure investments, roadway maintenance, and levying a new tax for EV owners, this discussion breaks down the key issues surrounding EVs and consider legislation policymakers in Texas may consider this session.
David M. Satterfield, John W. Diamond, Edward M. EmmettApril 12, 2023
The pandemic spurred a rollercoaster of quick, subsequent economic events in three years that might normally occur across three decades: record unemployment, a brief recession, federal assistance, highest inflation since the 1980s, interest rate increases, and in 2023, concerns regarding a looming recession. Some U.S. consumers have dealt with the aftermath of this whiplash by shifting their spending and saving behaviors. Our experts discuss U.S. consumer trends since the pandemic — what’s stayed the same, new phenomena, and notable policy developments.
David M. Satterfield, Joe Barnes, Joyce Beebe, John W. DiamondMarch 1, 2023
The Texas power grid is infamously disconnected from the rest of the U.S. Its status as an “energy island” can bring both advantages and disadvantages. Two years ago, Winter Storm Uri knocked out power across Texas for days and exposed major reliability concerns. Here, we discuss changes made in the two years since Winter Storm Uri. Is the Texas grid “fixed?”
Julie A. Cohn, Peter R. Hartley, Edward M. Emmett, David M. SatterfieldFebruary 21, 2023
TikTok — the China-owned app that is currently the most popular social platform in America — is at the center of a swirling geopolitical and economic debate. The app has faced criticism from U.S. government officials who say it gives China access to American data, making it a security risk. Here, we discuss the risks, the efficacy of bans, and consider the possibility of a TikTok-less America.
David M. Satterfield, Joe Barnes, Aynne Kokas, Steven W. LewisFebruary 2, 2023
Why does Texas have its own power grid, and how can its history inform the future of electric power in the state? Nonresident scholar Julie Cohn looks beyond the mythology surrounding the standalone Texas grid and finds that reliability and economics — not politics — were the major factors leading to isolation.
In an extension of an earlier analysis prepared for the American Action Forum, the authors use the Diamond-Zodrow computable general equilibrium model of the U.S. economy to simulate the macroeconomic effects of a 10-year fiscal plan financed by tax changes proposed by Joe Biden’s 2020 presidential campaign.
With opposition to large-scale energy infrastructure on the rise, transmission service providers find it problematic to build the new power lines essential to a greener grid. This paper highlights the Texas Competitive Renewable Energy Zone initiative (CREZ) — a case study of the difficulties that new power lines face and the policy choices that can facilitate development of this necessary infrastructure. The CREZ experience can inform development of new large-scale transmission infrastructure in other regions.
In this paper, authors examine the concerns raised by a new wealth tax and analyze the economic effects of the tax using a computable general equilibrium model.
John W. Diamond, George R. ZodrowSeptember 15, 2020