Conquering Cost: Optimal Policy Approaches to the Cost of Climate Change Workshop Briefing Memo

The American Clean Energy and Security Act of 2009, passed by the U.S. House of Representatives, sets a cap that covers about 85 percent of U.S. total greenhouse gas emissions and virtually all emissions from the combustion of fossil fuels. Costs of complying with the bill were at the center of the House debate, in large part due to lingering concerns about the state of the economy. As the Senate considers comparable efforts to pass comprehensive energy and climate legislation, cost concerns will remain critical and if they are not dealt effectively, threaten to stall legislation.