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.

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.

As the Kyoto conference of the parties on the United Nations Framework Convention on Climate Change once again underscored, man-made climate change has become one of the major challenges to our generation and many generations to come. Since scientific evidence on climate change can be seen as increasingly reliable, the focus of our attention has to turn more and more to the question of foreseeable damages and to possibilities to prevent and mitigate climate change. In other words, we need to analyse the economic aspects of man marle climate change and the policy options to prevent its most severe impacts. This book reports on the findings of an international workshop on these aspects of global climate change. It was organised by the Centre for European Economic Research (ZEW) in Mannheim, Germany on March 6th and 7th 1997. In the light of the ongoing international policy-making process on climate change, we decided to publish the report after the Kyoto conference from December Ist to 10th, 1997, to include the results of the conference, which emphasise the importance of economic aspects and economic policy options when it comes to addressing the problern of man-made climate change. Thus, this book went to press in February 1998 the moment we received the official version of the Kyoto Protocol, which is reproduced in the annex.

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.

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. The compelling case for these conclusions is provided in Advancing the Science of Climate Change, part of a congressionally requested suite of studies known as America's Climate Choices. While noting that there is always more to learn and that the scientific process is never closed, the book shows that hypotheses about climate change are supported by multiple lines of evidence and have stood firm in the face of serious debate and careful evaluation of alternative explanations. As decision makers respond to these risks, the nation's scientific enterprise can contribute through research that improves understanding of the causes and consequences of climate change and also is useful to decision makers at the local, regional, national, and international levels. The book identifies decisions being made in 12 sectors, ranging from agriculture to transportation, to identify decisions being made in response to climate change. Advancing the Science of Climate Change calls for a single federal entity or program to coordinate a national, multidisciplinary research effort aimed at improving both understanding and responses to climate change. Seven cross-cutting research themes are identified to support this scientific enterprise. In addition, leaders of federal climate research should redouble efforts to deploy a comprehensive climate observing system, improve climate models and other analytical tools, invest in human capital, and improve linkages between research and decisions by forming partnerships with action-oriented programs.