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Offsetting New Co2 Emissions: A Rational First Greenhouse Policy Step

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  • DANIEL J. DUDEK
  • ALICE LeBLANC

Abstract

This paper describes and assesses a policy to slow the increase of carbon dioxide (CO2) emissions in the atmosphere. Policy governing new CO2 sources would either prevent emissions, procure compensating emissions reductions, or sequester emissions in sinks. The paper uses electric power plants to demonstrate the mechanics of the policy and the control or offset choices. Offset options include scrubbing, fuel switching, investments in energy conservation and efficiency, and afforestation. Costs per ton ofC02 sequestered range from $1.35 for planting shade trees to $59.41 for scrubbing. All options except scrubbing cost less than $11.00, and the median cost is around $6.00 per ton removed. Planting trees on erodible cropland in conjunction with the Conservation Reserve Program combines the goals of reduced erosion, surplus agricultural production, and greenhouse warming. This policy is a first sane step toward reducing the accumulation of greenhouse gases. Having an international framework for managing emissions is most desirable. In the interim, however, the United States can demonstrate environmental leadership, generate substantial conservation benefits, and spark ingenuity in searching for alternatives, broadening the options, and lowering the ultimate costs of reducing CO2 emissions.

Suggested Citation

  • DANIEL J. DUDEK & ALICE LeBLANC, 1990. "Offsetting New Co2 Emissions: A Rational First Greenhouse Policy Step," Contemporary Economic Policy, Western Economic Association International, vol. 8(3), pages 29-42, July.
  • Handle: RePEc:bla:coecpo:v:8:y:1990:i:3:p:29-42
    DOI: 10.1111/j.1465-7287.1990.tb00642.x
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    References listed on IDEAS

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    1. Albanese, Anthony S. & Steinberg, Meyer, 1980. "Environmental control technology for atmospheric carbon dioxide," Energy, Elsevier, vol. 5(7), pages 641-664.
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