Market Mechanisms: Understanding the Options


Courtesy of Center for Climate and Energy Solutions

The most recent study on climate change by the U.S. National Academy of Sciences concluded that, “Climate change is occurring, is caused largely by human activities, and poses significant risks for—and in many cases is already affecting—a broad range of human and natural systems. (See Climate Change 101: Science and Impacts.) The combustion of fossil fuels has contributed to the expansion of the global economy since the start of the Industrial Revolution. It has also substantially increased the concentration of carbon dioxide, the primary greenhouse gas in the atmosphere. The cumulative impact of these emissions poses significant economic risks. Policies to reduce emissions are required if we are to avoid the most costly damages of a rapidly changing climate. This brief describes how market-based policies can achieve climate goals more cheaply and efficiently than alternative policy structures—all while driving innovation to develop more cost effective, clean energy solutions that will serve as the foundation for strong economic growth throughout the 21st century.

Click here to read the full brief on market mechanisms.

Customer comments

  1. By Paul Boudreau on

    Last time I checked my biology, CO2 was a necessary ingredient for photosynthesis, so therefore, more CO2 correlates to more plant growth, and consequently more oxygen production (by-product of photosynthesis). Not sure this is a bad thing for a world running out of food. More people also die of cold than warmth. Quick question for the wizards of smart in the climate change (formerly global warming - notice how they don't use this terminology anymore) - was man-made industrial expansion responsible for Greenland's green period??