As the debate over how best to curb greenhouse gases heats up, a lot of attention is being focused on the price of emitting 1 metric ton (t) of CO_2. Opposing camps have taken strong positions on setting the price through a carbon tax versus a cap-and-trade program. Whichever system is chosen, getting an early start and setting a strong price signal are crucial to achieving steep cuts in greenhouse gas emissions without harming the economy, experts say. The world must invest about 1% of global gross domestic product (GDP) by 2050 to stabilize greenhouse gas levels at 500-550 parts per million, according to the Stern Review report, the first major analysis of the global costs of emitting carbon. By making it expensive to pollute, both pricing systems provide an incentive to make that investment.
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