Another key decision for policymakers is determining the appropriate level at which to set the cap. More stringent caps would lead to lower emissions, which in turn would reduce future risks but raise near-term costs. The choice of stringency is further complicated by the fact that the benefits (reductions in future damage) and costs of alternative levels of stringency are both uncertain.
Note: Materials presented at this conference are available on CBO's Web site in a special collection on the topic of climate change. Click on the link below to go to the website.
http://www.cbo.gov/publications/collections/collections.cfm
Peter R. Orszag, Director