Chapter 13: The Environment and International Relations

Summary

You are the new President of the United States in 2021.

Next on your agenda of issues to deal with is the global threat of climate change. The overwhelming majority of climate change experts agree that the world must prevent a two degree increase in global temperature in order to avoid catastrophic harms.

The United States is the world's second largest emitter of greenhouse gases, but the US cannot avoid the global two degree tipping point on its own, you will need to work with the international community.

Before you engage the international community, you must decide on unilateral policy to combat climate change. While you want to make substantial progress on reducing emissions, you must be careful to not pursue a policy that will embolden powerful business lobbyists.

Which unilateral policy will you choose?

Carbon tax	This policy would tax the carbon content of hydrocarbon fuels (coal, petroleum, and natural gas). The greater the amount of carbon dioxide a business releases, the greater the tax they will have to pay. Revenue from the carbon tax will be used to subsidize renewable energy initiatives.
Subsidize renewables	The federal government would increase its tax credits, low-cost loans, and grants to businesses developing renewable energy initiatives. This approach would make it easier for the renewable energy sector to compete with the fossil fuels industry. Over time, innovation will occur, reducing the costs of renewable energy solutions.
Announce emissions goals	You will hold a highly-publicized press conference, announcing new goals for carbon emissions reduction. These targets will not be enforceable but may reassure lobbyists, scientists, and the international community of American commitment to combatting climate change.