GLRPPR Sector Resource: Policy Options for Reducing CO2 Emissions
Policy Options for Reducing CO2 Emissions
This CBO study concludes that the most efficient options are, in descending order, a carbon tax, a cap-and-trade system with a safety valve, a cap-and-trade system with a circuit breaker, and finally, an annual inflexible cap.The CBO report said that a cap-and-trade with a safety valve design could help reduce the problem of price volatility that has been associated with previous emissions reductions programs. It also noted that an upstream point of regulation in a domestic carbon emissions program would be beneficial, as it would require regulating the least number of entities.
Congressional Budget Office
Date of Publication:
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