Coercion and enterprise in the provision of environmental public goods: The case of carbon sequestration in the united states

Abstract

Current discussions of greenhouse gas abatement strategies have focussed on the use of carbon taxes and marketable allowance schemes. Implementation of a large‐scale carbon sequestration program in the United States will require broadening the scope of the instruments under consideration to include contracts, subsidies, command and control regulation and direct government production. This paper develops a taxonomy for these instruments, examines the factors that affect their relative attractiveness, and applies that analysis to carbon sequestration in the United States.

Key words:

• climate change
• carbon sequestration
• policy instruments
• taxes
• marketable allowances
• regulation
• contracts
• subsidies
• government production

Notes

Pacific Northwest Laboratory is operated for the U.S. Department of Energy by Battelle Memorial Institute under contract DE‐AC06–76RLO 1830.