Table of Contents

The Plan to Deal With Global Warming

1. Energy and global warming

Global warming is happening
Main origin of global warming: energy

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

US government’s required action
Traditional taxation and regulations: only in moderation

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. Within the international agreement of COP21

US unilateral cuts of CO2 emissions would be perilous
Sharing economic woes with an international agreement

6. Will the plan behind COP21 work?

COP21 is a first step
Post-COP21 phase is daunting

7. Monitoring progress of containing global warming

8. Will economic discontent make it fail?

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

Appendix: Warnings: No Easy Solution!

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 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: A healthy financial system is needed to keep deflation at bay

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