ABSTRACT
Throughout the world, countries are adopting policies in an attempt to make progress against climate change. As we have seen so far, positive actions include increasing renewable energy generation and encouraging energy ef…ciency. The positive effects of these actions are reducing vulnerability to energy price spikes, promoting development of local economies, and improving air quality. This chapter examines cap and trade as a policy tool, how the carbon trading market works in an international arena, the need for global action, and possible economic implications. It also examines the economics of mitigation options and looks speci…cally at new technology including carbon capture and storage. Speci…cally, it outlines the process in general, as de…ned by the Intergovernmental Panel on Climate Change (IPCC), and then examines specialized technology in two unique settings: geological formation sequestration and deep ocean sequestration. In conclusion, this chapter explores the value and necessity of various global adaptation strategies.
