Query: Climate economics research shows that in reality, we are harming the economy by failing to implement CO2 limits.

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Carbon tax <=SEP=> A carbon tax is a tax levied on the carbon content of fuels . It is a form of carbon pricing . Carbon is present in every hydrocarbon fuel ( coal , petroleum , and natural gas ) and converted to carbon dioxide and other products when combusted . In contrast , non-combustion energy sources -- wind , sunlight , geothermal , hydropower , and nuclear -- do not convert hydrocarbons to . is a heat-trapping `` greenhouse '' gas which represents a negative externality on the climate system ( see scientific opinion on global warming ) . Since GHG emissions caused by the combustion of fossil fuels are closely related to the carbon content of the respective fuels , a tax on these emissions can be levied by taxing the carbon content of fossil fuels at any point in the product cycle of the fuel .   Carbon tax offers social and economic benefits . It is a tax that increases revenue without significantly altering the economy while simultaneously promoting objectives of climate change policy . The objective of a carbon tax is to reduce the harmful and unfavorable levels of carbon dioxide emissions , thereby decelerating climate change and its negative effects on the environment and human health .   Carbon taxes offer a potentially cost-effective means of reducing greenhouse gas emissions . From an economic perspective , carbon taxes are a type of Pigovian tax . They help to address the problem of emitters of greenhouse gases not facing the full social cost of their actions . Carbon taxes can be a regressive tax , in that they may directly or indirectly affect low-income groups disproportionately . The regressive impact of carbon taxes could be addressed by using tax revenues to favour low-income groups .   A number of countries have implemented carbon taxes or energy taxes that are related to carbon content . Most environmentally related taxes with implications for greenhouse gas emissions in OECD countries are levied on energy products and motor vehicles , rather than on emissions directly .   Opposition to increased environmental regulation such as carbon taxes often centers on concerns that firms might relocate and/or people might lose their jobs . It has been argued , however , that carbon taxes are more efficient than direct regulation and may even lead to higher employment ( see footnotes ) . Many large users of carbon resources in electricity generation , such as the United States , Russia , and China , are resisting carbon taxation .

Climate change mitigation <=SEP=> Climate change mitigation consists of actions to limit the magnitude or rate of long-term climate change . Climate change mitigation generally involves reductions in human ( anthropogenic ) emissions of greenhouse gases ( GHGs ) . Mitigation may also be achieved by increasing the capacity of carbon sinks , e.g. , through reforestation . Mitigation policies can substantially reduce the risks associated with human-induced global warming .   According to the IPCC 's 2014 assessment report , `` Mitigation is a public good ; climate change is a case of the ` tragedy of the commons . Effective climate change mitigation will not be achieved if each agent ( individual , institution or country ) acts independently in its own selfish interest ( see international cooperation and emissions trading ) , suggesting the need for collective action . Some adaptation actions , on the other hand , have characteristics of a private good as benefits of actions may accrue more directly to the individuals , regions , or countries that undertake them , at least in the short term . Nevertheless , financing such adaptive activities remains an issue , particularly for poor individuals and countries . ''   Examples of mitigation include phasing out fossil fuels by switching to low-carbon energy sources , such as renewable and nuclear energy , and expanding forests and other `` sinks '' to remove greater amounts of carbon dioxide from the atmosphere . Energy efficiency may also play a role , for example , through improving the insulation of buildings . Another approach to climate change mitigation is climate engineering .   Most countries are parties to the United Nations Framework Convention on Climate Change ( UNFCCC ) . The ultimate objective of the UNFCCC is to stabilize atmospheric concentrations of GHGs at a level that would prevent dangerous human interference of the climate system . Scientific analysis can provide information on the impacts of climate change , but deciding which impacts are dangerous requires value judgments .   In 2010 , Parties to the UNFCCC agreed that future global warming should be limited to below 2.0 ° C ( 3.6 ° F ) relative to the pre-industrial level . With the Paris Agreement of 2015 this was confirmed , but was revised with a new target laying down `` parties will do the best '' to achieve warming below 1.5 ° C . The current trajectory of global greenhouse gas emissions does not appear to be consistent with limiting global warming to below 1.5 or 2 ° C . Other mitigation policies have been proposed , some of which are more stringent or modest than the 2 ° C limit .

Emissions trading <=SEP=> Emissions trading or cap and trade is a government-mandated , market-based approach to controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants . In contrast to command-and-control environmental regulations such as best available technology ( BAT ) standards and government subsidies , cap and trade ( CAT ) schemes are a type of flexible environmental regulation that allows organizations to decide how best to meet policy targets . Various countries , states and groups of companies have adopted such trading systems , notably for mitigating climate change .   A central authority ( usually a governmental body ) allocates or sells a limited number of permits to discharge specific quantities of a specific pollutant per time period . Polluters are required to hold permits in amount equal to their emissions . Polluters that want to increase their emissions must buy permits from others willing to sell them . Financial derivatives of permits can also be traded on secondary markets .   In theory , polluters who can reduce emissions most cheaply will do so , achieving the emission reduction at the lowest cost to society . Cap and trade is meant to provide the private sector with the flexibility required to reduce emissions while stimulating technological innovation and economic growth .   There are active trading programs in several air pollutants . For greenhouse gases , which cause climate change , permit units are often called carbon credits . The largest greenhouse gases trading program is the European Union Emission Trading Scheme , which trades primarily in European Union Allowances ( EUAs ) ; the Californian scheme trades in California Carbon Allowances , the New Zealand scheme in New Zealand Units and the Australian scheme in Australian Units . The United States has a national market to reduce acid rain and several regional markets in nitrogen oxides .

Sustainable development <=SEP=> Sustainable development is the organizing principle for meeting human development goals while at the same time sustaining the ability of natural systems to provide the natural resources and ecosystem services upon which the economy and society depends . The desirable end result is a state of society where living conditions and resource use continue to meet human needs without undermining the integrity and stability of the natural systems .   While the modern concept of sustainable development is derived mostly from the 1987 Brundtland Report , it is also rooted in earlier ideas about sustainable forest management and twentieth century environmental concerns . As the concept developed , it has shifted to focus more on economic development , social development and environmental protection for future generations . It has been suggested that `` the term ` sustainability ' should be viewed as humanity 's target goal of human-ecosystem equilibrium ( homeostasis ) , while ` sustainable development ' refers to the holistic approach and temporal processes that lead us to the end point of sustainability '' .   The concept of sustainable development has been -- and still is -- subject to criticism . What , exactly , is to be sustained in sustainable development ? It has been argued that there is no such thing as a sustainable use of a non-renewable resource , since any positive rate of exploitation will eventually lead to the exhaustion of Earth 's finite stock ; this perspective renders the Industrial Revolution as a whole unsustainable . It has also been argued that the meaning of the concept has opportunistically been stretched from ` conservation management ' to ` economic development ' , and that the Brundtland Report promoted nothing but a business as usual strategy for world development , with an ambiguous and insubstantial concept attached as a public relations slogan ( see below ) .