Addressing Climate Change through Public Policy and Markets
Climate change is one of the most important challenges mankind is facing and it is therefore important to find ways to address it through regulation and harnessing the power of markets. Together the two projects we propose, will focus on this challenge by seeking to understand the underexplored issues related to the climate crisis and by exploring potential avenues for policy change.
Purpose: Our project falls within the (1) and (4) categories of the Walker Foundation Grant Guideline topics. The first of two proposed projects will build on the CRM’s efforts to conduct research and policy work to advance our knowledge of how we can solve the climate crisis by leveraging both regulations and markets and improve our understanding of the interplay between climate policy and market-based solutions. With a specific focus on issues that are currently underexplored in the debate, broad topics for our proposed climate work in the project period may include carbon pricing, climate risk management and technological solutions to climate change.

• Investigates the causes of economic imbalances.
• Explores and develops market-based solutions.

Exploring the feasibility of a CBAM in the USA
Project will explore the feasibility of a Carbon Border Adjustment Mechanism in the U.S.
Purpose: The project will particularly focus on how a CBAM would be an efficient way to address the market failure caused by greenhouse gas emissions (i.e., find a remedy for impaired markets).

Climate change is one of the most important challenges mankind is facing and it is therefore important to find ways to address it through regulation and harnessing the power of markets.

• Investigates the causes of economic imbalances.
• Explores and develops market-based solutions.

Fossil Fuel Risk Bonds - From Vision to Reality
As a result of Walker Foundation’s sustained investment in CSE’s Fossil Fuel Risk Bond (FFRB) program we have three separate rulemaking processes underway in Oregon and Washington to implement the policy concept on the ground. The first involves protecting frontline communities living near Portland’s Critical Energy Infrastructure Hub from catastrophic explosions and massive oil spills likely to occur in the event of a worst-case earthquake disaster. The second involves strengthening financial assurance rules that have been on the books but never enforced for oil tankers and oil facilities along Puget Sound. The third is seeing King County Washington’s adoption of the FFRB concept to the finish line through an ordinance fully protecting taxpayers from the risks and costs of fossil fuel infrastructure, including its eventual abandonment. Our request in 2023 is to concentrate efforts on these three processes and, in the meantime, build a replicable model for counties across the nation.
Purpose: In 2016 Center for Sustainable Economy proposed a commonsense solution for addressing the market failures associated with fossil fuel infrastructure – fossil fuel risk bond (FFRB) programs. Climate change is one, a market failure of breathtaking proportions. Add to that the market failures associated with fossil fuel infrastructure itself – the vast network of coal mines, oil and gas wells, pipelines, refineries, oil trains, LNG trains and fossil fuel export terminals that cause expensive physical damages to land, air, water and frontline communities. Air pollution and climate change caused by fossil fuels generate externalized damages of $2.2 – $5.9 trillion per year in the US, and by 2100, the Network for Greening The Financial System predicts a hit in the order of 3 – 10% of GDP each year. Fossil fuel risk bond programs are tools that regulators can use to begin to address these staggering externalized costs.

• Investigates the causes of economic imbalances.
• Investigates causes tending to destroy or impair the free-market system.
• Explores and develops market-based solutions.

US Forest Carbon Pricing Initiative
With support from Walker Foundation, CSE will continue to advance its goal of including the logging and wood products sector in federal, state, and local climate action plans and regulation of this sector’s climate impacts through market-based solutions. At the federal level we are participating in new regulatory processes initiated by Executive Order 14008 (climate smart forestry) Executive Order 14072 (mature and old growth forests), and the US pledge to end deforestation and forest degradation by 2030. At the state level, we are focusing efforts on executive actions by governors in North Carolina, Maine, Oregon and Washington. In addition, the Forest Carbon Coalition, co-directed by CSE, is mobilizing scientific, community, and conservation organizations to promote climate action agendas at both levels that includes accounting for logging and wood products sector emissions, a forest carbon tax and reward program and other market-based solutions.
Purpose: Climate change has been referred to as the most spectacular market failure ever. The market’s failure to incorporate the costs of climate change into prices of wood and paper products supports a tremendous level of over-production, over-consumption, and wasteful uses of these commodities. Putting a price on high-emissions logging operations is a critical market-based solution for internalizing the catastrophic costs associated with climate change and rebalancing markets to support efficient use of energy resources, forestlands, and wood products. With respect to forestlands, CSE has pioneered the development of several market-based policy interventions that decision makers can use to help expedite the transformation of industrial forest practices to climate smart alternatives. These include forest carbon tax and reward, subsidy reform, cap and invest, no net loss and climate resiliency plans for large owners.

• Investigates the causes of economic imbalances.
• Investigates causes tending to destroy or impair the free-market system.
• Explores and develops market-based solutions.

Fossil Fuel Risk Bonds – a multi-state strategy
With generous support from the Alex C. Walker Foundation in 2022, CSE and its partners made major advances towards full implementation of the fossil fuel risk bond concept in Oregon and Washington, including statewide legislation in both states and a comprehensive ordinance in King County. Details are provided below.
Purpose: The economic rationale behind fossil fuel risk bond programs is simple. Every year, the fossil fuel industry externalizes trillions of dollars in economic damages onto the backs of taxpayers. These costs manifest in the form of climate disasters, fossil fuel infrastructure disasters, and the costs of interventions needed to both mitigate and adapt to climate change. According to the UN’s most recent analyses, the cost of achieving climate stability has been priced out between $1.6 trillion and $3.8 trillion per year and is rising every year we delay bold climate action. Lord Stern famously said that this represents the greatest market failure that the world has seen. Fossil fuel risk bond programs are one policy tool governments at every level can use to correct this market failure and force the fossil fuel industry to internalize the gargantuan costs it is passing on to the rest of the world.

• Investigates the causes of economic imbalances.
• Investigates causes tending to destroy or impair the free-market system.
• Explores and develops market-based solutions.

US Forest Carbon Pricing Initiative
With funding from Walker Foundation, CSE is advocating for inclusion of the logging and wood products sector in federal, state, and local climate action plans and regulation of this sector’s climate impacts through market-based solutions. At the federal level we are participating in new regulatory processes initiated by Executive Order 140008, Executive Order 14072, and the US pledge to end deforestation and forest degradation by 2030. At the state level, we are focussing efforts on executive actions by governors in North Carolina, Maine, Oregon and Washington. The Forest Carbon Coalition, co-directed by CSE, is mobilizing scientific, community, and conservation organizations to promote climate action agendas at both levels that includes accounting for logging and wood products sector emissions, a forest carbon tax and reward program, redirection of harmful subsidies, and ecosystem service markets as an alternative to timber to finance public schools and services.
Purpose: Climate change has been referred to as the most spectacular market failure ever. The market’s failure to incorporate the costs of climate change into prices of wood and paper products supports a tremendous level of over-production, over-consumption, and wasteful land use.
A price on high-emissions logging operations is a critical market-based solution for internalizing the catastrophic costs associated with climate change and rebalancing markets to support efficient use of forests.
CSE has pioneered several market based interventions to help expedite the transformation of industrial forest practices to climate smart alternatives. These include forest carbon tax and reward, subsidy reform, cap and invest, no net loss and climate resiliency plans for large owners. We are working at the federal level and in Maine, North Carolina, Washington and Oregon to advance these through decision making processes now underway.

• Investigates the causes of economic imbalances.
• Investigates causes tending to destroy or impair the free-market system.
• Explores and develops market-based solutions.

Compelling GHG Pollution Phase Out Under Existing US Law
Administrative & public advocacy, research, and legal action as warranted, to secure a strong federal rule pursuant to the Toxic Substance Control Act (TSCA) aimed at phasing out GHG pollution and compelling major sources to remove or pay to remove excess atmospheric CO2, initially incentivized by a rising carbon fee.
Purpose: The Project relates to the Foundation’s purposes in that present legal structures have enabled major interests, particularly the fossil fuel sector, to treat the atmosphere as a free and open dump for GHG pollution. This has induced a dangerous planetary energy imbalance which, if not reversed, threatens to vastly expand economic instability and immiseration.
Our project takes as given (but not, of course, immutable) central features of the free-market and democratic system and, attempting to work within and make these systems work, demands enforcement of existing bedrock law towards the intermediate goal of imposing a rising fee on CO2 and other GHG pollutants and a longer-term goal of restoring earth's energy balance at a lower average temperature conducive to humanity and nature as we have come to know it.

• Investigates causes tending to destroy or impair the free-market system.
• Explores and develops market-based solutions.

State Policy Analysis Database for Electricity
This application is to acquire funding to expand the State Climate Policy Dashboard, a 50-state interactive database of climate policy managed by Climate XChange. Specifically, this request is for funding to expand the electricity policy data to a new scorecard for all 50 states.
Purpose: State policy is a major driver of economic decisions in the electricity sector. A state policy database and scorecard allow for pinpoint identification of which policies are distorting the electricity market and holding back/unleashing the potential for renewables
The electricity market is a complicated web of local, state, and federal policy, as well as many market actors such as generators, utilities, consumers, regional authorities, and financial institutions. This project allows market actors easier access to consolidated information on state policy that pertains to the electricity market and helps identify key states and policies to focus on to unlock decarbonization further.
Many state policies in the electricity sector are market-based solutions that must be carefully measured and tracked to ensure they function properly. The Dashboard will highlight best-in-class market-based solutions at the state level for others to replicate.

• Investigates the causes of economic imbalances.
• Investigates causes tending to destroy or impair the free-market system.
• Explores and develops market-based solutions.

Support for Climate XChange & The State Climate Policy Dashboard
This application is to support Climate XChange's efforts to put forth market-driven solutions to climate change. Climate XChange achieves these impacts primarily through the State Climate Policy Network (SCPN) and State Climate Policy Dashboard (Dashboard). The SCPN is a platform of 16,500 state climate leaders that have access to programming, research, and direct support from Climate XChange to advance state climate policy. The Dashboard is a public database of 65+ climate policies across all 50 states that helps state actors and researchers better navigate technical policy information. Funding will provide added resources to the direct technical support, research and data analysis, and advocacy efforts that enable our network of state climate leaders to push forward sensible and just policy solutions to climate change.
Purpose: State policy is a major driver of economic decisions in key sectors that contribute to climate change and greenhouse gas emissions. It is critical that actors at each level of the climate movement have access to the resources, networks, best practices, and knowledge sharing required to effectively move toward a clean energy economy that protects vulnerable communities, promotes economic growth, and creates jobs.
Energy markets are a complicated web of local, state, and federal policy, as well as many market actors such as generators, utilities, consumers, regional authorities, and financial institutions. CXC allows market actors to more readily access cutting-edge information on state policy that informs their on-the-ground decisions and influences decision makers on the most effective pathways to decarbonization.

• Investigates causes tending to destroy or impair the free-market system.
• Explores and develops market-based solutions.

Donlin Gold's Energy Demands for Dwindling Cook Inlet Gas
The Donlin Gold mine would be a massive open-pit complex next to the Kuskokwim River in southwest Alaska, and the natural gas pipeline needed to fuel the mine would cut a swath from Cook Inlet, over the Alaska Range, to the mine site 315 miles away. In 2022, Hilcorp announced that it no longer has confidence that it will be able to continue to meet Cook Inlet energy demand as current utility contracts expire. If utilities in Cook Inlet are out of gas, they will be forced to import liquified natural gas (LNG) for electricity generation and home heating fuel. As a result, prices will escalate making Alaska less attractive to live and invest in. Meanwhile, Donlin Gold is banking on getting its power from Cook Inlet. Inletkeeper is working with an Alaskan economist to analyze the impact Donlin will have on gas prices for Cook Inlet residents and to highlight the economic imbalances of corporate energy demands on residential and local business users.
Purpose: This project satisfies the Foundation’s purpose by addressing the cause of economic imbalances by researching how a massive mining project might alter the demand for dwindling Cook Inlet gas, which supplies 85 percent of the Cook Inlet region’s electricity. This significant corporate demand for gas would propel the region to import expensive LNG much faster and lock Cook Inlet into continued reliance on fossil fuels for decades before the many renewable energy projects being explored in the region can come online to supply cheaper electricity for residents and local businesses.

• Investigates the causes of economic imbalances.

Equity Impacts of Clean Energy Policy Design
Good Energy Collective (GEC) will analyze the effects of clean energy policies on energy prices to further understand the impact on inequality and the short-term feasibility of decarbonization policies in a period of growing inflationary concerns. In tandem, GEC will analyze the effects on marginalized communities of insufficient baseload energy resources and how different energy policies may be eroding reliability.
Purpose: This project will meet the goals of the Walker Foundation by investigating causes of impairment to the free-market system through inefficient or counterproductive clean energy incentives and tax schemes, and the effect that such policies have on rising energy costs and income inequality. Further, our state-level and national analyses will investigate the extent to which such policies reduce grid resiliency and reliability, and how the reduced capacity of baseload power places a disproportionate economic burden on low-income communities.

• Investigates the causes of economic imbalances.
• Investigates causes tending to destroy or impair the free-market system.

Maximizing ecosystem services and biodiversity protection for future land acquisitions of the Children’s Eternal Rainforest (Bosque Eterno de los Niños, “BEN”)
In November 2022, the Monteverde Conservation League received a grant from the Alex C. Walker Foundation for the amount of $20,000. The primary goal for this project was to use GIS techniques to map areas adjacent to the Children’s Eternal Rainforest (Bosque Eterno de los Niños, “BEN”) in order to identify the best places to concentrate land purchases in the future. With GIS technology, we can identify areas that have highest ecosystem services values, biodiversity, and that would increase connectivity to other conservation areas of Costa Rica. These results would allow us to utilize our limited resources to maximize conservation success for the future.
Purpose: The BEN creates a market-based economy centered on ecotourism and education by attracting numerous tourists and student groups. The BEN is the centerpiece of a protected area connecting Monteverde and La Fortuna, locations that attract hundreds of thousands of visitors each year. Tourism has important direct and indirect economic effects on communities and is a great example of how biodiversity protection improves people's lives. With almost every family in some way associated with the ecotourism economy (some indirect, but many direct), support for conservation is strong. Since the BEN also protects soil, regulates water supply, and improves air quality, the ecosystem services extend well beyond its physical boundaries, providing benefits to hydroelectric generation, agriculture, and general quality of life. Improving biodiversity protection and ecosystem services for the future will help ensure a strong conservation-based economy and continue to improve the communities of the region.

• Explores and develops market-based solutions.

Wildlife Conflict Resolution and Western Waters Program 2023/2024
The NWF Wildlife Conflict Resolution program resolves conflicts between wildlife and livestock through the market-based approach of compensating ranchers for retiring high conflict grazing leases on federal land. Thanks to over a decade of funding from the Walker Foundation,we have retired over 75 grazing allotments totaling over 1.6 million acres. In 2017 NWF launched the WCR Southern Rockies, Colorado Plateau and Great Basin program and in the coming year we will pilot a new strategy in Grand Staircase-Escalante National and Bears Ears National Monuments in southern Utah that we will include "AUM buy-downs," but will also include the full retirement of grazing allotments.
Purpose: Beginning in 2001, NWF began using a market-based approach that recognized the economic value of grazing permits and offer to compensate ranchers for waiving their permit. We then receive assurances for from the agency that the allotment will not be restocked with livestock. In an effort to apply our model to new landscapes and to continue to innovate, we will adapt our allotment retirement model in Grand Staircase-Escalante National and Bears Ears National Monuments by testing what we are calling "AUM buy-downs." We should add that we are currently pursuing opportunities in both Monuments to fully retire several grazing allotments.

• Investigates the causes of economic imbalances.
• Investigates the effect of the global financial system and/or the monetary system in fostering a sustainable economy.
• Investigates causes tending to destroy or impair the free-market system.
• Explores and develops market-based solutions.

Wildlife Conflict Resolution and Western Waters Program 2022/2023
The NWF Wildlife Conflict Resolution program resolves conflicts between wildlife and livestock through the market-based approach of compensating ranchers for retiring high conflict grazing leases on federal land. Thanks to over a decade of funding from the Walker Foundation,we have retired over 75 grazing allotments totaling over 1.6 million acres. In 2017 NWF launched the WCR Southern Rockies, Colorado Plateau and Great Basin program and in the coming year we will pilot a new strategy in Grand Staircase-Escalante National Monument in southern Utah that we are describing as "AUM buy-downs." We are also launching the Western Waters Program that will largely focus on restoration of Colorado River Basin watersheds using beaver analog structures also known as Low Tech Process Restoration. This work will seek to institutionalize LTPBR in the Bureau of Land Management and to prioritize the retirement of grazing allotments that significantly impact downstream water quantity and quality.
Purpose: Beginning in 2001, NWF began using a market-based approach that recognized the economic value of grazing permits and offer to compensate ranchers for waiving their permit. We then receive assurances for from the agency that the allotment will not be restocked with livestock. In an effort to constantly innovate, we will adapt our allotment retirement model in Grand Staircase-Escalante National Monument by testing what we are calling "AUM buy-downs." In addition, with the launch of the Western Waters Program, we will scale-up a key natural infrastructure river restoration strategy in the Colorado Basin. Although much of the work will be focused on an effort to institutionalize LTPBR tools in BLM to increase water storage and habitat restoration, the program will expand the market-based strategies used by the WCR program to reduce grazing pressure in areas that will most benefit aquatic and riparian habitat restoration as well as water storage, downstream flows and water quality.

• Investigates the causes of economic imbalances.
• Investigates the effect of the global financial system and/or the monetary system in fostering a sustainable economy.
• Investigates causes tending to destroy or impair the free-market system.
• Explores and develops market-based solutions.

Defending against eminent domain abuse by fossil fuel industries
The explosion in U.S. shale gas and shale oil has caused an unprecedented building spree of oil and gas pipelines. Our concern is that massive investment in pipeline infrastructure may become the largest impediment to transitioning to renewable power. One of the ways to prevent this is by curtailing the ability of pipeline companies to use eminent domain to take property. Because Niskanen has a strong commitment to free market principles and the protection of property rights, it is perfectly situated to lead such legal efforts, and we believe it is extremely important for courts to hear from a pro-market, right-of-center organization that focuses on property rights issues around pipelines, and not exclusively on their environmental impacts.
Purpose: A victory on the public use and/or Due Process claims we are litigating, or a decision holding that a pipeline is an interstate not intrastate pipeline, would not only stop such a pipeline, but have huge ramifications for every intrastate pipeline in selected state.
We have drafted model legislation to amend the NGA that would eliminate the worst of the problems. We launched an advocacy campaign aimed at educating Members on Capitol Hill regarding the principled issues in play that should compel those that care about property rights to support reforming the NGA, and in the course of that have presented two panel briefings (one House and one Senate) for Hill staff.
We are looking to remedy some problems by asking FERC to change its eminent domain regulatory regime.

• Investigates the causes of economic imbalances.
• Explores and develops market-based solutions.

Atmospheric Trust Campaign
Our Children’s Trust is the only 501(c)(3) non-profit public interest law firm in the world providing science-based legal services exclusively to children to secure their legal rights to a safe climate. Our legal work – grounded in constitutional, public trust, and human rights laws, as well as in the laws of nature – aims to stop government actions that contribute to the worsening of the climate crisis, as these actions also violate innumerable rights that depend fundamentally on a habitable planet (rights to life, liberty, property, personal security, religious freedom, etc.). We work to protect Earth’s climate for present and future generations by representing and supporting young people in global legal efforts to secure legally binding judicial declarations that will return atmospheric carbon dioxide concentrations to below 350 parts per million (ppm) by the year 2100: the scientific prescription for a safe climate.
Purpose: We are exploring and advocating for market approaches and other policies that will promote a sustainable economy and economic balance relating to ecosystem services, climate change, energy security, food production and other environmental issues.
Economic imbalances that favor carbon intensive goods and services and perpetuate environmental degradation continue to dominate our economy. Our work will lead to court orders that require governments to realign those imbalances toward a sustainable economy, in accordance with scientific prescriptions to stabilize our climate system and de-acidify our oceans. We advocate for legal mandates that will drive market-based and related policy solutions of the sort referenced in preceding sections.

• Explores and develops market-based solutions.

Atmospheric Trust Campaign
We support legal actions and public education to secure the legal right to a healthy atmosphere and stable climate system at the federal, state and global domestic levels. See supplemental section for a description of specific actions.
Purpose: We are investigating and addressing a major cause of economic imbalance: the climate.
Presently, society does not accurately price the damages that stem from climate destabilizing activities and products. Present and future harms that come from such activities and products are not factored into their pricing, resulting in major economic imbalances today and in the future.
Additionally, we are exploring and advocating for market approaches that will promote a sustainable economy and economic balance relating to ecosystem services, climate change, energy security, food production and other environmental issues.
Economic imbalances that favor carbon intensive goods and services and perpetuate environmental degradation continue to dominate our economy. Our work will lead to court orders that require governments to realign those imbalances toward a sustainable economy, in accordance with scientific prescriptions to stabilize our climate system and de-acidify our oceans.

• Investigates the causes of economic imbalances.
• Explores and develops market-based solutions.

Building Grasstops Support in 2022/2023 for Carbon Pricing
In 2022-23, the Pricing Carbon Initiative (PCI) will continue with its efforts, launched in 2011, to build support, by fostering understanding and cooperation between a wide range of organizations and opinion leaders, for bipartisan carbon pricing solutions designed to drastically reduce greenhouse gas emissions. During the ongoing pandemic, PCI is conducting the ongoing Pricing Carbon Dialogues in a virtual mode. Given how well this is working, the virtual meetings will likely continue even after our in-person meetings resume. PCI will also continue to organize related efforts designed to engage and encourage additional support, cooperation and participation. [This application, submitted earlier this year, is being resubmitted with updates for the October 1, 2022 grant cycle.
Purpose: Participants in the PCI network share a steadfast belief that correcting the price distortion that excludes the climatic and social costs of fossil fuels from their pricing is more timely and urgent than ever. Market-driven solutions are central to PCI's mission. PCI’s continuing bi-partisan, multi-stakeholder dialogues continue to build consensus across party lines and with ideologically diverse interest groups.

• Investigates the causes of economic imbalances.
• Investigates the effect of the global financial system and/or the monetary system in fostering a sustainable economy.
• Investigates causes tending to destroy or impair the free-market system.
• Explores and develops market-based solutions.

Building Engaged, Informed, and Connected Grasstops for 2023 and Beyond
With this project, the Pricing Carbon Initiative (PCI) will continue with the mission launched in 2011 to build support for bipartisan carbon pricing solutions, designed to drastically reduce greenhouse gas emissions, by fostering understanding and cooperation between a wide range of organizations and opinion leaders. (www.pricingcarbon.org) This request was amended on 4/24/23 to include added funding for a 2-day retreat this May on current opportunities to promote Carbon Border Adjustment Mechanisms (CBAMs).
Purpose: 1) We focus on policies to correct the economic distortions resulting from the free dumping of carbon pollution into Earth's atmosphere and oceans. 2) While focusing on U.S. domestic legislation, we address design elements that transparently link with a global carbon pricing system and foster global economic sustainability. 3) A robust economic consensus suggests the need to price in the externalities associated with fossil fuel burning. Otherwise, the costs of climate change threaten to undermine and destroy global economic stability. 4) Policies to price carbon pollution will take advantage of existing energy markets to correct price signals in the use of fossil fuels that ignore the social costs of carbon. Negative externalities not included in prevailing models, such as the acidification of oceans, must be included in the mix. Pricing carbon emissions can correct the distortion in energy markets whereby fossil fuels are favored over low-carbon alternatives.

• Investigates the causes of economic imbalances.
• Investigates the effect of the global financial system and/or the monetary system in fostering a sustainable economy.
• Investigates causes tending to destroy or impair the free-market system.
• Explores and develops market-based solutions.

Ocean System Damages and the Social Cost of Carbon
Climate change poses myriad threats to oceans. The ocean provides critical services that are essential to human well-being, including food, biodiversity, non-use value, recreation, and tourism. However, ocean acidification and warming (OAW), which are driven by the oceans absorbing emitted carbon dioxide (CO2) and climate change, are having significant detrimental impacts on these systems. While these impacts have substantial economic value, OAW has yet to be incorporated into estimate of the social cost of carbon (SCC). The SCC is a metric intended to reflect the damages, in dollars, stemming from an incremental ton of CO2 released into the atmosphere. The SCC is used by federal policymakers and others as a measure of the benefits of mitigating carbon emissions. To address this important gap for policymaking, RFF proposes to convene an interdisciplinary group of experts in a series of virtual workshops to study how researchers might go about incorporating OAW damages into the SCC.
Purpose: The project will encourage discussion and further exploration of the economic effects of the impacts of climate change on ocean systems, such as biodiversity losses, fishery impacts, non-use value, coral reefs, and recreation/tourism. Further, the Social Cost of Carbon is an important metric that, in quantifying the cost of emissions, can support market-based solutions to mitigating those emissions. It is used by federal, state and local policymakers to evaluate the benefits of potential policies against the potential cost of regulation. It is also frequently used by corporations to evaluate the impact of their own proactive efforts to address climate change, and can inform markets for carbon offsets, or tradable certificates linked to activities that lower the amount of carbon dioxide in the atmosphere.

• Investigates the causes of economic imbalances.
• Explores and develops market-based solutions.