|
Abstract: This Article uses the lessons learned from other emissions trading programs to assess the potential effectiveness of various approaches to the control of greenhouse gases and recommends the design of a CO2 emissions policy. Section II examines the relative effectiveness of a CO2 offset program compared to traditional regulatory standards, a carbon tax, and emissions trading programs for other air pollutants. Section III develops the optimal design of a CO2 offset program. A total of twenty policy choices encountered in the design of such a program are evaluated and the best option for each policy choice is identified. Appendix A presents the twenty policy choices and the available options. In analyzing these policy choices, Section III identifies the important issues in designing and implementing a CO2 offset policy, and outlines the most feasible and effective blueprint for such a program.
|