ABSTRACT
The climate crisis has reached the level of a global emergency, with economists as well as scientists calling for a response that can reduce greenhouse gas emissions to zero to avoid continuing and increased damage. Policies to respond to global climate change can be preventive or adaptive. One of the most widely discussed policies is a carbon tax, which would fall most heavily on fuels that cause the highest carbon emissions. The revenues from such a tax could be recycled to lower taxes elsewhere in the economy, or they could be used to assist people in lower income brackets, who will suffer most from higher costs of energy and goods.
Another policy option is tradable carbon emissions permits, which can be bought and sold by firms or countries, depending on their level of carbon emissions (also known as “cap-and-trade”). Both of these policies have the advantage of economic efficiency, but it can be difficult to obtain the political support necessary to implement them. Other possible policy measures include shifting subsidies from fossil fuels to renewable energy, strengthening energy efficiency standards, and increasing research and development on alternative energy technologies.
392Estimates of greenhouse gas abatement costs indicate that numerous opportunities exist for actions that could reduce carbon emissions and also save households and businesses money, and that billions of tons of additional emissions can be avoided at low cost. More ambitious policies to achieve net-zero emissions would involve a major commitment and trillions of dollars in investment. But many of these investments would have a considerable economic payback in terms of reduced fuel use as well as “collateral” environmental benefits such as reduced ground-level air pollution, improved public health, and improved food security and nutrition.
International negotiations have aimed at a global agreement to achieve drastic reductions in greenhouse gas emissions. The Paris Agreement of 2015 has been accepted by almost all the world’s countries, but its provisions are based on voluntary pledges. It creates a framework for substantial reductions by industrialized countries, and for reduction of emissions intensity (emissions per unit GDP) by China, India, and other developing countries, with a target date for a “peaking” of emissions by China. A review process is intended to strengthen countries’ commitments over time.
In addition to international commitments, many initiatives have been taken at regional, national and local levels, involving carbon taxes, cap-and-trade, and other emission-reduction measures. Great potential for additional reductions exists through improving forest and agricultural practices, resulting in fewer emissions and increased carbon storage in forests and soils.
It is important to design equitable national and international climate change policies. The heaviest burdens of climate damage are likely to fall on the lowest-income countries, who are also least responsible for past and current emissions. The “greenhouse development rights” framework proposes allocating the financing for climate change mitigation and adaptation based on each country’s responsibility for past emissions and its economic capacity, while still allowing poor countries to achieve economic development.
