Energy

There is a growing impetus for a domestic U.S. climate policy that can provide meaningful reductions in emissions of CO2 and other greenhouse gases. The paper describes and analyzes an up-stream, economy-wide CO2 cap-and-trade system which implements a gradual trajectory of emissions reductions (with inclusion over time of non-CO2 greenhouse gases), and includes mechanisms to reduce cost uncertainty.

The Bali climate change conference was a qualified success. Before we went to Bali, we observed that it will be good news if there’s no bad news coming out of the negotiations.  This was achieved, and then some.