pollution coming from power plant

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Forecasting the True Costs of Climate Policy

Decision makers around the world debate the viability of new market-based climate policies, but our inability to accurately forecast their economic costs and consequences makes it challenging to determine which work best. 

The Climate Solutions Group at emLab has developed a new empirical method that allows us to forecast the cost of cap-and-trade climate policies. Rather than relying on hard-to-test modeling assumptions, our approach leverages stock and prediction markets data to quantify the expected cost of proposed policies including the most prominent U.S. cap-and-trade policy considered to date, the Waxman-Markey Bill.