availability of international offsets are one of the most important factors determining estimates of the cost of these bills. This paper has described how international offset usage was modeled in EPA’s analysis of H.R. 2454, and how assumptions about available sources of greenhouse gas abatement, reference case greenhouse gas emissions, and climate policies in other countries can have major impacts on the cost of the bill. This highlights the importance of future research to update and improve estimates of marginal abatement cost curves for international sources of greenhouse gas abatement; to revisit the difference in greenhouse gas abatement potential from countries with market-based climate policies versus abatement in the form of offsets or sectoral credits from countries without market-based climate policies; to continually update reference greenhouse gas emissions projections; and represent the broad range of climate policies that could be adopted in the future.
Calvin KV, JA Edmonds, B Bond-Lamberty, LE Clarke, SH Kim, GP Kyle, SJ Smith, AM Thomson, and MA Wise. 2009. “2.6: Limiting Climate Change to 450 ppm CO2 Equivalent in the 21st Century,” Energy Economics 31(S2): S107-S120.
CBO. 2009. “Congressional Budget Office Cost Estimate: H.R. 2454 American Clean Energy and Security Act of 2009, As ordered reported by the House Committee on Energy and Commerce on May, 21, 2009.” www.cbo.gov/doc.cfm?index=10262.
Clarke, L., J. Edmonds, H. Jacoby, H. Pitcher, J. Reilly, and R. Richels. 2007. CCSP Synthesis and Assessment Product 2.1, Part A: Scenarios of Greenhouse Gas Emissions and Atmospheric Concentrations. U.S. Government Printing Office, Washington DC.
EIA. 2009. “Energy Market and Economic Impacts of H.R. 2454, the American Clean Energy and Security Act of 2009.” www.eia.doe.gov/oiaf/servicerpt/hr2454/index.html.
Goettle, R.J., Fawcett, A.A.2009. “The structural effects of cap and trade climate policy,” Energy Economics, doi:10.1016/j.eneco.2009.06.016.
Jorgenson, D.W., Goettle, R.J., Wilcoxen, P.J., Ho, M.S.2000. “The Role of Substitution in Understanding the Costs of Climate Change Policy.” Pew Center on Global Climate Change, Arlington, VA. September.
Jorgenson, D.W., Goettle, R.J., Wilcoxen, P.J., Ho, M.S.2008. “The Economic Costs of a Market-based Climate Policy.” Pew Center on Global Climate Change, Arlington, VA. June.
Jorgenson, D.W., Goettle, R.J., Wilcoxen, P.J., Ho, M.S.2009. “Cap and trade climate policy and U.S. economic adjustments.” The Journal of Policy Modeling 31 (3), 362-381 (May/June).
Paltsev, S., J.M. Reilly, H.D. Jacoby and J.F. Morris. 2009. “The Cost of Climate Policy in the United States,” MIT Joint Program on the Science and Policy of Global Change, Report 173.
Ross, M.T., A.A. Fawcett, C.S. Clapp. 2009. “U.S. climate mitigation pathways post-2012: Transition scenarios in ADAGE,” Energy Economics, doi:10.1016/j.eneco.2009.06.002.
Sohngen, B. and R. Mendelsohn. 2006. “A SensitivityAnalysis of Carbon Sequestration.” In Human-Induced Climate Change: An Interdisciplinary Assessment. Edited by M. Schlesinger. Cambridge: Cambridge University Press.
U.S. EPA. 2006. Global Mitigation of Non-CO2 Greenhouse Gases, U.S. Environmental Protection Agency, EPA 430-R-06-005, Washington, D.C., June 2006.
U.S. EPA. 2007. “EPA S.280 mitigation cost schedules for capped sectors and domestic and international offsets,”Memo to EIA. March, 2007. Available in “Data Annex to Supplemental H.R. 2454 Analysis” www.epa.gov/climatechange/economics/economicanalyses.html.
U.S. EPA. 2009a. “EPA Preliminary Analysis of the Waxman-Markey Discussion Draft.” April 20, 2009. www.epa.gov/climatechange/economics/economicanalyses.html.
U.S. EPA. 2009b. “EPA Analysis of the American Clean Energy and Security Act of 2009: H.R. 2454 in the 111th Congress.” June 23, 2009.www.epa.gov/climatechange/economics/economicanalyses.html.
U.S. EPA. 2009c. “Economic Impacts of S. 1733: The Clean Energy Jobs and American poser Act of 2009.” October 23, 2009. www.epa.gov/climatechange/economics/economicanalyses.html.
U.S. EPA. 2010. “Supplemental EPA Analysis of the American Clean Energy and Security Act of 2009: H.R. 2454 in the 111th Congress.” January 29, 2010. www.epa.gov/climatechange/economics/economicanalyses.html.