Policy Options To Reduce Greenhouse Gas Emissions

Without significant reductions of greenhouse gas emissions, climate change will cause substantial damage to the environment and the economy. The scope of the threat demands a close look at the policies capable of reducing the harm. Confronting the Climate Challenge presents a unique framework for evaluating the impacts of a range of U.S. climate-policy options, both for the economy overall and for particular household groups, industries, and regions. Lawrence Goulder and Marc Hafstead focus on four alternative approaches for reducing carbon dioxide emissions: a revenue-neutral carbon tax, a cap-and-trade program, a clean energy standard, and an increase in the federal gasoline tax. They demonstrate that these policies—if designed correctly—not only can achieve emissions reductions at low cost but also can avoid placing undesirable burdens on low-income household groups or especially vulnerable industries. Goulder and Hafstead apply a multiperiod, economy-wide general equilibrium model that is distinct in its attention to investment dynamics and to interactions between climate policy and the tax system. Exploiting the unique features of the model, they contrast the shorter- and longer-term policy impacts and focus on alternative ways of feeding back—or “recycling”—policy-generated revenues to the private sector. Their work shows how careful policy design, including the judicious use of policy-generated revenues, can achieve desired reductions in carbon dioxide emissions at low cost, avoid uneven impacts across household income groups, and prevent losses of profit in the most vulnerable U.S. industries. The urgency of the climate problem demands comprehensive action, and Confronting the Climate Challenge offers important insights that can help elevate policy discussions and spur needed efforts on the climate front.

It is not intended to model or quantify the impacts of each policy option over time but instead to examine the means by which each influences behavior and the demand for and supply of energy- and emissions-saving technology, particularly in the modes of transportation with the greatest effect on the sector's consumption of petroleum and emissions of GHGs. In choosing among policies, elected officials must take into account many factors that could not be examined in this study, such as the full range of safety, economic, and environmental implications of their choices; therefore, the report does not recommend a specific suite of policies to pursue. Instead, the emphasis is on assessing each policy approach with regard to its applicability across transportation modes and its ability to affect the total amount of energy-intensive transportation activity, the efficiency of transportation vehicles, and GHG emissions characteristics of the sector's energy supply.

Council on Foreign Relations This book provides a balanced and comprehensive account of the issues involved in climate change and the range of domestic and foreign policy options available to American policymakers.

Elevated levels of greenhouse gases in the atmosphere and the resulting effects on the earth¿s climate could have significant environmental and economic impacts in the U.S. and internationally. Potential impacts include rising sea levels and a shift in the intensity and frequency of floods and storms. Proposed responses to climate change include adapting to the possible impacts by planning and improving protective infrastructure, and reducing greenhouse gas emissions directly through regulation or the promotion of low-emissions technologies. Much of this report centers on the effect emissions regulation could have on the economy based on the opinions of experts. Illustrations.

"TRB Special Report 307: Policy Options for Reducing Energy Use and Greenhouse Gas Emissions from U.S. Transportation examines the potential for policies to yield major changes in transportation energy use and emissions trends by policy measures targeting cars and light trucks, medium and heavy trucks, and commercial airliners. These three modes are by far the largest users of energy by U.S. transportation because they account for the vast majority of passenger trips and freight. According to the committee that produced the report, it will take more than tougher fuel economy standards for U.S. transportation to significantly cut national petroleum use over the next half century. It will likely require a combination of measures that foster consumer and supplier interest in vehicle fuel economy, alternative fuels, and a more efficient transportation system. Major policy options examined in the report-fuel taxes, vehicle efficiency standards, fuel standards, infrastructure investments, and coordinated transportation and land use planning-have the potential to bring about large energy and emissions savings from these modes over time; however, each option presents particular challenges with respect to the scope and timing of its impacts. The report suggests that combining transportation policy options to increase the timeliness and expand the scale and scope of the response may be warranted. Saving energy in transportation can have important implications for the cost of securing the world's oil supplies, since transportation accounts for most of the petroleum consumed in the United States. It can also help with controlling the buildup of greenhouse gases (GHGs), which will require major reductions in carbon dioxide (CO2) emissions from economic sectors that are heavy users of carbon-rich fossil fuels. Scientific analyses and models indicate a need to stabilize atmospheric concentrations of CO2 and other GHGs by the middle of this century to reduce the risks of climate change. A response by the transportation sector to this energy and emissions challenge will be important because it produces between one-quarter and one-third of all of the CO2 emitted from the country's energy consumption."--Publisher's website.