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In the interim, we need a large, focused, federalprogram to develop and demonstrate commercial-scale technologies. An expanded R&D program should also include efficiency upgrades, rebuilds, repowering, poly-generation and co-firing with biomass. We may not see a strong CO 2 price signal for many years.
This revenue could be used to either cut other taxes or to avoid cuts in Federalprograms. The first win—Congress could reduce personal or corporate income tax rates, extend the payroll tax cut, maintain spending on social programs, or some combination of these options.
Illustration of the representative US cumulative GHG emissions budget targets:170 and 200 Gt CO2-eq (for Kyoto gases). In some instances, it may be appropriate for state/local efforts to be preempted by new federalprograms, but this must be balanced against the need to allow for flexibility and innovation. Source: NRC.
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