Developing of risk-hedging CO2-emission policy. Part II: risks associated with measures to limit emissions, synthesis and conclusions

This paper is Part II of a two-part series in which the risk associated with unrestrained greenhouse-gas emissions, and with measures to limit emissions, are reviewed. The following risks associated with these efforts to limit CO2 emissions are reviewed here: (1) resources might be diverted from other urgent needs; (2) economic growth might be reduced; (3) reduction measures might cost more than expected; (4) early action might cost more than later action; (5) reduction measures might have undesired side effects; (6) reduction measures might require heavy-handed government intervention; and (7) reduction measures might not work. With gradual implementation of a diversified portfolio of measures, these risks can be greatly reduced. Based on the review of risks associated with measures to limit emissions here, and the review of the risk associated with unrestrained emissions presented in Part I, it is concluded that a reasonable near-term (20-30 year) risk hedging strategy is one which seeks to stabilize global fossil CO2 emissions at the present (early 1990s) level. This is turn implies an emission reduction of 26% for industrialized countries as a whole and 40-50% for Canada and the USA if developing country emissions are to increase by no more than 60%, which in itself would require major assistance from the industrialized countries. The framework and conclusions presented here are critically compared with so-called optimization frameworks. 82 refs., 2 figs., 2 tabs