by John Irons
Global warming is fast becoming a reality. Unless significant action is taken to reduce greenhouse gas emissions, we can expect irreversible environmental and economic damage. While there is little serious debate on the need to reduce emissions-especially of carbon dioxide-there is a substantial debate on how to reduce these emissions. In theory, either a direct quantity restriction (cap-and-trade) or a price mechanism (tax) could be used to reduce production of carbon dioxide. But there is a policy stalemate on which is better.