350 Climate Management Issues
The Economics of Cap and Trade
According to Nat Keohane, PhD, newest member of the U.S. National
Economic Council as of January 2011, serving as advisor on environmental
and energy policy to President Obama, aggressive cap and trade is not only
affordable, but it is also critical to both the earth and humanity’s future. The
cost to the economy will be minimal—for example, it is estimated to be less
than 1 percent of the U.S. gross domestic product (GDP) in 2030. Keohane
also stresses that the longer action is delayed, the more expensive it will
be to make emission cuts. In addition, the more time that passes without
addressing the issues, the more irreversible damage will be done by climate
change