NATIONAL LEGISLATURE EXERCISE

[This is a role playing game. The object of the game is to produce a group outcome (legislative choice) that leaves you with as many points as possible. The allocation of points is described below.]

PART 1: The Problem

Our country is a multi-party parliamentary democracy governed by a governing coalition of parties anchored by the two centrist parties – the Christian Democrats and the Social Democrats. The National Legislature is considering legislation which would require fossil-fueled power plants to reduce their emissions of air pollution. The Prime Minister’s bill, the Air Pollution Act 2004 (“APA”), would address a variety of air pollution issues. The National Legislature is considering adding the following provisions to the APA, and will vote on both proposed provisions this week.

  • The “CO2 Provision” would impose a similar 50 percent reduction in emissions of carbon dioxide (CO2) at coal-fired power plants and oil refineries as well. Environmentalists favor The CO2 Provision because CO2 is the most common greenhouse gas, and greenhouse gas emissions are believed to cause global warming. Industry opposes the provision because it would greatly increase their production costs.
  • The “Tradeable Permits Provision” would permit any new CO2 emissions limits in the APA to be achieved through a so-called “tradeable permit system,” under which emitters of these pollutants will be allocated “emissions allowances” representing their allowable emissions levels. Such tradeable permit regimes are authorized under the Kyoto Agreement on global warming. Under the proposed amendment, firms may buy or sell these allowances on the open market, so that those who can most cheaply reduce their emissions will bear the lion’s share of the reductions (by reducing their emissions by more than 50 percent and selling their excess emissions rights to those who reduce by less than 50 percent). Most environmentalists prefer individual permit limits for each emissions source, and oppose The Tradeable Permits Provision because they allow historically high-polluting plants to continue to pollute at high levels (even if they achieve overall reductions within the industry). Industry favors The Tradeable Permits Provision because it will reduce compliance costs.
  • The “Renewables Provision” would establish a national renewable portfolio standard, and would require every retail electric service provider to obtain 15% of the electricity they sell at retail from renewable sources by 2020. Coal producing regions tend to oppose this provision, as do energy intensive industries. Environmental groups tend to favor it.

As members of the National Legislature, you will vote on these proposed changes to the APA. You are each members of apolitical party in the legislature, and each party is either part of the governing coalition or a member of the minority (opposition) coalition. Because these are issues that cross traditional ideological boundaries, the parties within the governing coalition are not united on these issues; nor are the parties in the opposition. The governing coalitionwill decide the order in which amendments will be considered during floor debate, subject to the rules of the exercise as outlined below. Your party’s position (i.e., policy objectives) is listed below, as are the lists of parties that make up the governing coalition and minority coalition, respectively. Legislators earn points by securing a legislative outcome that best represents their party’s position, as described below. Your objective is to score as many points as possible.

Part II: The Process

The Exercise will proceed as follows. [NOTE: Members of one party may discuss strategy with members of another party at any time, including before class or during any phase of the in-class exercise.]

First 20 minutes: Theparties convene separately to discuss strategy.

Next 20 minutes: The governing coalitionand minority coalition convene separately. Each should choose a favored party position on these issues, if possible. The governing coalition must elect a floor leader who will control the debate on the bill, and who can earn extra points (see Part III below) by securing the outcome the governing coalition wants. The minority coalition must designate a leader whose amendment proposal will be considered during the debate (see item 5 below). The minority coalition leader can earn extra points if the legislature chooses an outcome favored by the minority coalition (see Part III below).

Next 5 minutes: Theparties reconvene to discuss strategy.

Remaining Time: Voting. The floor leader will recognize individual legislators who may propose amendments to the APA, subject to these rules.

  1. The onlythreeprovisions that may be proposed as amendments are the CO2 Provision, the Tradeable Permits Provision, and the Renewables Provision. The Tradeable Permits Provision may be proposed only in conjunction with the CO2 Provision, since it refers to how the provision will work.
  2. Any amendment proposed by a legislator during floor debate must be voted upon by the entire National Legislature. That is, the floor leader cannot recognize a legislator during debate and then refuse to let the legislature vote on his/her proposal.
  3. Each amendment will be voted on in the order proposed. However, each proposed amendment may itself be amended once (by a vote of the entire legislature) prior to a vote on itsapproval.[1]
  4. At some point during the debate, the floor leader must permit the National Legislature to consider (and vote upon) each of these two proposed provisions. That is, the floor leader cannot prevent the National Legislature from considering either of these two proposals.
  5. During the session, the floor leader has complete discretion to decide which legislators he recognizes and in which order, except that he or she must recognize (and allow the National Legislature to vote upon any amendment proposed by) the minority coalition leader.
  6. Amendments may be proposed more than once during the session.
  7. Subject to these requirements, the floor leader can close the session at any time his or her discretion. Once the session is closed it may not be reopened.

PART III: Parties and Their Policy Positions

The Governing Coalition: These parties generally favor moderate environmental protection legislation, but worry that

  • The Social Democrats: The Social Democrats are the major center-left party in the country, and favor adding all three proposed Provisions to the bill. They favor environmental protection, but like to be seen as market-friendly.
  • The Christian Democrats: The Christian Democrats are the major center-right party on the country. They would like to be seen as pro-environment, but worry about the costs that additional regulation imposes on business. They favor the CO2 Provision with the Tradeable Permits Provision. They have no objection to the Renewables Provision, but worry about creating too much new regulation all at once.
  • The Populist Democrats: The Populist Democrats represent mostly rural interests. They don’t like big government, but favor the Renewables Provision because they expect it will enable farmers to make money by developing wind power and biofuels.
  • The United Left: This small party is mildly anti-capitalist. When the nation’s communist party dissolved 5 years ago, most of its members joined the Socialist Party; the remainder formed the United Left. The UL favors the CO2 Provisionbut without the Tradeable Permit Provision included. It has no particular objection to the Renewables Provision.

The Minority Coalition (Opposition Parties): The word coalition is a misnomer here, in that these parties do not share much in the way of a common ideology. Nevertheless, they do meet in caucus periodically to discuss opposition tactics.

  • The Green Party The Greens favor both CO2 emissions controls and a renewable portfolion standard, but they are distrustful of business, and of allowing firms to trade permit rights. They oppose the Tradeable Permits Provision as a bad precedent in environmental regulation.
  • The Socialist Party: The Socialists’ main constituency are unionized labor, who opposes CO2 emissions regulation on the grounds that it may jeopardize the jobs of coal miners and other workers.
  • The Free Enterprise Party: The Free Enterprise party believes that renewable energy is a pipe dream, they suspect that global warming is a hoax. They prefer no new regulation, but support the principle of marketable permits when regulation is imposed.
  • The Conservative Party: The Conservatives support industrial development, and is generally anti-regulatory. It opposes strongly subsidies for renewable energy. It would prefer no regulation of CO2; however, its second best alternative would be CO2 regulation with permit trading to ease the cost of new regulation.

TABLE 1: Points Party Members Can Earn Under Each Possible Outcome

[Note: Players made trade points]

No amendments / CO2 Provision only / CO2 Provision + Tradeable Permits Provision / CO2 Provision + Tradeable Permits Provision + Renewables Provision / CO2 + Renewables Provision / Renewables Provision Only
Social Democrats / 0 / 4 / 7 / 10 / 5 / 3
Populist Democrats / 3 / 0 / 3 / 6 / 7 / 10
United Left / 3 / 10 / 3 / 4 / 6 / 3
Green Party / 0 / 8 / 2 / 5 / 10 / 4
Socialist Party / 10 / 0 / 3 / 4 / 3 / 9
Christian Democrats / 4 / 2 / 10 / 5 / 3 / 5
Free Enterprise / 10 / 3 / 7 / 6 / 0 / 3
Conservative Party / 10 / 5 / 7 / 3 / 0 / 4

PARTY ASSIGNMENTS

[NOTE: If you are not on the class roster (e.g., if you are auditing the class) but would like to participate, you may join either the Free Enterprise Party or the Conservative Party.]

Social Democrats / Christian Democrats / Green Party / Socialist Party
AZIZ; AREZ M. / COLLARD; ERIK SCOTT / LAPIERRE; NATHAN RICHARD / NEUKOM; JOHN KNIGHT
BLACK; BRODIE GENE / DANNHAUS; AUSTIN BLAKE / LAUREL; DAVID ANTHONY / QU; XIAOLAN
BLAHA; CRAIG ERBEN / DEPP; MEGHAN KATHLEEN / LEE; HANNAH / RYU; YOUNG HO
BRANDL; KEVIN MICHAEL / ELDER; KATHERINE ANNE / LEE; KYNDAL CHRISTENE / SATTERWHITE; ELLEN BESS
BUK; GIEUN SUNG / ELLAHI; ASMA / LO; JULIE CHRISTINE / SEALE; BRANDON FORREST
CARLSON; GREGORY MICHAEL / GAO; XIAOXIAO / LUSARDI; GREGORY DAVID / SHEN; YAN
CHOI; WOO SOK / GARCIA HICKS; PAOLA MARIA / MCCRADIC; MITCHELL RAY
CIRIA; JAVIER J. JR. / GONZALEZ; LYRIA MARIE
GREEN; BENJAMIN WILSON
Populist Democrats / United Left / Free Enterprise / Conservative Party
GREEN; JORDAN SCOTT / HOEKZEMA; ANDREW LAURENCE / STANGL; COURTNEY E. / WRIGHT; TRAVIS CLAY
GUAN; MARY XIN / JENSEN; DANIEL ROBERT / STEWART; JENNIFER MARIE / WU; LEI
GUERRERO; BRENDA / KANG; LINHONG / WENDLANDT; PIERS TIMOTHY / ZHAO; MENGYING
KIM; JUNGRYUL / WIEDEMANN; EDWARD S.

1

[1] That is, if a legislator proposes an amendment (The CO2 Provision) adding The CO2 Provision to the Act, another legislator may propose to amend The CO2 Provision by adding The Tradeable Permits Provision to that amendment. In that case, the National Legislature will vote on the proposed amendment to The CO2 Provision before voting on The CO2 Provision itself. Alternatively, if someone proposes an amendment (The Tradeable Permits Provision) that includes both provisions, someone else may propose to amend The Tradeable Permits Provision by deleting The Tradeable Permits Provision. The National Legislature would vote on the amendment to The Tradeable Permits Provision before voting on The Tradeable Permits Provision itself.