In anticipation of the California Air Resources Board (CARB)’s upcoming decision over a greenhouse gas emissions trading program, Next 10, a nonprofit nonpartisan research organization, commissioned five research papers from leading academic experts to address the multibillion dollar issue of how California should distribute greenhouse gas allowances and the resulting revenue.
Key findings include:
- A clear priority is for government investment to facilitate the capture of low cost greenhouse gas emission reductions that the emissions trading program alone would not achieve. This enhances cost effectiveness by overcoming market barriers inhibiting the transition to low carbon economy technologies that exist even after a price on carbon is established.
- In light of the above, and AB 32’s mandate to ensure fairness in implementation and environmental justice in particular and the need for California to adapt to climate change to the extent some warming is inevitable, research identifies a number of priority investments:
- Research, development and demonstration funding to speed the invention and commercialization of new advanced technologies,
- Incentives to bolster the diffusion of existing improved technologies,
- Investments in communities burdened by high pollution levels and low income, to capture public health benefits there and to enhance the program’s fairness, and
- Adaptation to climate change recognizing that some global warming is inevitable.
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