Transcript Domestic Options for Global Climate Change Policy

Principal Goals:
-- Reducing risk of “excessive” compliance costs, while assuring
reasonable GHG emissions reductions
-- Inducing further developing-country participation
-- Integrating U.S policy with Kyoto actions
Complementary Research Areas:
1. Defining the basis for emissions caps – dealing with uncertainties
• alternative approaches:
-- fixed emissions targets
-- quantity-price hybrid (safety valve)
-- intensity targets (fixed emissions-GDP ratios)
-- more general emissions-GDP relationship (e.g., E = a GDP b )
2. Providing effective incentives for carbon separation and capture
• positive prices for CO2 emissions provide some incentive
• to what extent should R&D subsidies be introduced in order to
provide further incentive?
• Should R&D subsidies be used instead of emissions caps?