Our country's landscape has changed dramatically over the last 50 years as a result of numerous governmental policies and subsidies that encourage low-density development commonly referred to as "sprawl." Sprawl results in environmental problems ranging from air pollution to wetland degradation. Our countryside is disappearing and becoming more fragmented, while urban areas are simply neglected. Moreover, this type of growth, which has gone unchecked for the latter half of this century, increases traffic congestion, strains public budgets, and deteriorates our quality of life.

Two carbon pricing bills were introduced during the 115th Congress. Reps. Carlos Curbelo (R-Fla.) and Brian Fitzpatrick (R-Pa.) introduced the MARKET CHOICE Act during the summer of 2018. Reps. Ted Deutsch (D-Fla.) and Francis Rooney (R-Fla.) introduced the Energy Innovation and Carbon Dividend Act (Energy Innovation Act) in November 2018, and reintroduced it early in the 116th Congress, where it presently has more than 65 cosponsors. By different methods and with different comprehensiveness, both of these bills place a Pigouvian tax on greenhouse gas (GHG) emissions.

The United States owns, on behalf of all Americans, approximately 30% of the nation’s land, totaling more than 600 million acres. These lands are overseen by the Bureau of Land Management (BLM) in the U.S. Department of the Interior (DOI).

In Federal Lands and Fossil Fuels: Maximizing Social Welfare in Federal Energy Leasing, Prof. Jayni Foley Hein assesses inefficiencies in the federal fossil fuel leasing program that lead to the over-extraction of fossil fuels at great societal cost. In recognition of the U.S. Department of the Interior’s (DOI's) role in stewarding federal lands for the long-term benefit of the American people, Hein proposes that DOI should adopt a policy of seeking to maximize social welfare or “net public benefits” in its leasing decisions.

The externality costs of fossil fuel production—including pollution costs—are not accounted for under the U.S. Department of the Interior’s (Interior) coal, oil, and natural gas leasing programs. This results in fossil fuel production on public lands imposing significant social costs. Interior’s leasing programs have never been tailored to meet any past or present climate change goals, despite their significant contribution to domestic greenhouse gas emissions.