Table of Contents

The Plan to Deal With Global Warming

1. Energy and global warming

*** 1. Energy and global warming ***
Global warming is happening
Main origin of global warming: energy

2. Solutions are expensive

*** 2. Solutions are expensive ***
Clean electricity is the main alternative
Clean electricity: no cheap alternative fuel
Clean electricity: renewable energy has considerable drawbacks

3. Traditional financing won't do it

*** 3. Traditional financing won’t do it ***
US government’s required action
Traditional taxation and regulations: only in moderation

4. New policies

*** 4. New policies to build up efficient markets without damaging the economy ***
The Carbon Tax
Cap and trade
Carbon tax and cap and trade unconvincing experiments

5. COP21

*** 5. Within the international agreement of COP21 ***
US unilateral cuts of CO2 emissions would be perilous
Sharing economic woes with an international agreement

6. Will COP21 work?

*** 6. Will the plan behind COP21 work? ***
COP21 is a first step
Post-COP21 phase is daunting

7. Monitoring progress

*** 7. Monitoring progress of containing global warming ***

8. Coping with discontent?

*** 8. Will economic discontent make it fail? ***

9. An alternative plan

*** 9. An alternative plan to catch up with a slow start ***

Appendix: Warnings: No Easy Solution!

First Warning: Taxation

*** First Warning: Taxation won’t solve all problems! ***
Moderate taxation for the common good
Heavy taxation and the lessons of the past
Not too far: High taxation is a political threat

Second warning: Borrowing

*** Second warning: Borrowing has limits ***
In a crisis: only measured public borrowing
First limit of borrowing: overly indebted
Second limit of borrowing: inflation
Inflation can seriously disrupt the economy
The Fed must control borrowing and inflation since the 1980s

Third warning: The financial system

*** Third warning: A healthy financial system ***
Deflation is a bad sign for the economy
Dodging deflation after the 2008 crisis
Fighting other root-causes of the lackluster recovery and the quasi-deflation
Risks of tripping up again