Government Documents for You

Policy Options for Reducing CO₂ Emissions. Washington, D.C.: Congressional Budget Office, 2008. SUDOC: Y 10.2:P 75/6

There is a growing scientific consensus that rising concentrations of carbon dioxide (CO2) and other greenhouse gases, which result from the burning of fossil fuels, are gradually warming the Earth’s climate. The amount of damage associated with that warming remains uncertain, but there is some risk that it could be large and perhaps even catastrophic.

Reducing that risk would require restraining the growth of CO2 emissions—and ultimately limiting those emissions to a level that would stabilize atmospheric concentrations—which would involve costs that are also uncertain but could be substantial. The most efficient approaches to reducing emissions of CO2 involve giving businesses and households an economic incentive for such reductions. Such an incentive could be provided in various ways, including a tax on emissions, a cap on the total annual level of emissions combined with a system of tradable emission allowances, or a modified cap-and-trade program that includes features to constrain the cost of emission reductions that would be undertaken in an effort to meet the cap.

This Congressional Budget Office (CBO) study was prepared at the request of the Chairman of the Senate Committee on Energy and Natural Resources and compares policy options based on three key criteria: their potential to reduce emissions efficiently; to be implemented with relatively low administrative costs; and to create incentives for emission reductions that are consistent with incentives in other countries. In keeping with the mandate of the CBO to provide objective, impartial analysis, the report contains no recommendations.

This document is available online: http://purl.access.gpo.gov/GPO/LPS90587

**Part of this entry is taken from the Preface of the document**