Right now, Congress is debating climate change legislation. And while the focus is on GHG reduction, a lot more than pollution is on the line, including America’s economy, our national competitiveness and our energy security.
That’s why we called our recent study on policy leadership in the quest to address climate change, The Balancing Act: because it addresses the three key areas of climate change, energy security and a sustainable economic future.
Our policy recommendations are rooted in an econometric study that explored several different climate change policy scenarios. We started off with the fundamental assumption that we must take steps now to reduce GHG emissions and address the risks of global climate change. We asked: how can America maximize emission reductions while minimizing the possible negative impact on the economy?
The short answer: carbon pricing isn’t enough.