The Congress of the United States O Congressional Budget Office
February 2008
Contents
1 Efficiency Implications of Different Policy Designs 1
A Carbon Dioxide Tax Versus an Inflexible Carbon Dioxide Cap 2
Flexible Cap Designs 8
2 Implementation Considerations for Different Policy Designs 15
A Carbon Dioxide Tax Versus an Inflexible Carbon Dioxide Cap 15
Flexible Cap Designs 17
3 International Consistency Considerations for Different Policy Designs 19
A Carbon Dioxide Tax Versus an Inflexible Carbon Dioxide Cap 19
Flexible Cap Designs 21
A Current and Proposed Cap-and-Trade Programs in the United States and Europe 23