Economic Challenges for Climate Change Policy

A consensus continues to grow among world leaders that climate change poses a threat to the global economy.

The Bush administration has been reluctant to impose mandatory greenhouse-gas curbs on U.S. industries. But the front-running 2008 presidential candidates and the Democratic majority in Congress say they are committed to enacting mandates to curb greenhouse gases.

For the next U.S. president and Congress, finding an approach that manages to cut greenhouse gases without doing serious harm to the U.S. economy remains a top concern.

Amid a slumping U.S. economy, any legislation that imposes higher energy costs will be particularly difficult to negotiate. However, many lawmakers say climate-change policy also holds economic opportunities, including creating jobs and employing new green technologies.