Key Assumptions-Determining the economic impact of policies to reduce carbon dioxide emissions

How likely is it that over a period of decades firms and households in the U.S. would adjust efficiently to higher energy prices to minimize their impacts on costs? (Alternatively: The behavior of firms and households would resemble their responses in past decades.)

How likely is it that if the U.S. adopts a national policy to limit carbon emissions, it will use the mechanisms for international trading of carbon permits established in the Kyoto Protocol? (Alternatively: The U.S. would achieve its targeted reductions unilaterally and forego possibilities to purchase emission reduction credits from other countries if available at lower cost.)

How likely is it that renewable energy technologies, such as wind and solar energy, will be available at stable prices and will be able to compete with fossil fuels once fuel prices rise far enough? (Alternatively: Renewable energy technologies will become increasingly expensive as their use increases.)

How likely is it that climate change will result in economic damages to the United States if U.S. emissions are not reduced? (Alternatively: Either climate change will cause no damages to the United States or reductions in U.S. emissions will have no impact on any such damages.)

How likely is it that reducing carbon dioxide emissions will also reduce emissions of other air pollutants that cause economic damages, such as sulfates, nitrogen oxides, mercury, and fine particulates? (Alternatively: Policies to reduce carbon dioxide emissions will have no effect on emissions of these other pollutants.)

How likely is it that national policies that make carbon fuels more expensive will stimulate technological innovation that raises energy efficiency or makes renewable energy alternatives less expensive? (Alternatively: Technological progress will continue at historical rates unaffected by the higher cost of carbon fuels.)

How likely is it that a national policy to reduce carbon emissions will yield government revenues, either from a carbon tax or auction sales of emissions permits, that will be used to offset impacts on the economy? (Alternatively: A policy will not result in any government revenue increase, or any such revenues will be used in ways that do not offset economic impacts.)