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Abstract:

A brief overview of the problem of climate change notes the diversity of its contributory causes, but concludes that the only feasible alleviation strategy at present is to reduce CO2 emissions in the energy sector. The analogy with CFC and SO2 abatement may be misleading: deep obstacles and uncertainties regarding CO2 may require a qualitatively different approach to be taken. On the positive side, reforms aimed at CO2 abatement may yield direct economic benefits. Most will involve higher energy prices, as environmental costs are internalized, and close international cooperation will therefore be essential to ensure these do not upset terms of trade. © 1990.