Greenhouse gases differ in their impacts on global temperatures.
Carbon dioxide is absorbed by growing vegetation and soils.
Defining the total impacts of CCAP as net reductions accounts for the increased sequestration of carbon dioxide as a result of the forestry and land-use actions in the program. I nations that have not ratified the Convention and did not commit to quantifiable emissions targets. If the target reduction is specified, as in this analysis, then there is one true price, which represents the marginal cost of abatement, and this also becomes the appropriate tax rate. In the face of uncertainty, however, the actual tax rate applied may over- or undershoot the carbon reduction target. Auctioning of the permits by the Federal Government is evaluated in this report.