California Analysis Shows Market-Based Climate Policy Is Over 80% Cheaper Than Regulation-Based Policy

  • Economic analysis released by the California Air Resources Board in 2016 shows that achieving their 2030 carbon reduction target with market-based policies costs $1.7 billion, while a regulation-based approach costs $9.7 billion.

  • The analysis shows that market-based policies can achieve the same carbon reduction target as regulatory policies, but at an 80% cheaper cost.

2016 Report: Phasing Out All Federal Fossil Fuel Leases Would Reduce Carbon Emissions, But Not Nearly by Enough to Avoid Worst Climate Risks

Takeaway: while limiting U.S. fossil fuel production can reduce carbon emissions, achieving the vast majority of reductions needed to avoid the worst climate risks requires reducing fossil fuel consumption.
  • A 2016 report calculates that a U.S. Federal Government phase-out of all fossil fuel leases would reduce carbon emissions by an amount (100 million tons by 2030) roughly equal to recent Federal fuel efficiency regulations.

  • As the figure below shows, this phase-out would close the gap by 9%, in 2030, between where U.S. emissions are trending and where they must be to avoid the worst climate risks.

The U.S.'s Climate Change Target Is Way Weaker than Europe's

Takeaway: the U.S. needs to pass stronger policies to reduce greenhouse gas emissions.

The U.S. and Europe's climate targets (% below 1990 levels)

The U.S.'s percentage reduction is far smaller than Europe's for both 2020 and 2025.