Number: RS21067
Title: Global Climate Change: Controlling CO2 Emissions - Cost-limiting Safety Valves
Authors: Larry Parker, Resources, Science, and Industry Division 
Abstract: Proposed CO2 reduction schemes present large uncertainties in terms of the perceived reduction needs and the potential costs of achieving those reductions. Several cost-limiting "safety valves" have been proposed to bound costs of any CO2 control program, including (1) a straight carbon tax, (2) a contingent reduction scheme, (3) unlimited permit purchases, and (4) cost-based excess emissions penalties. Employing a safety valve shifts much of the emission reduction debate from compliance targets to the specifications of the safety valve, in particular, the level of the tax or fee involved.
Pages: 6
Date: December 22, 2004