What are some of the financial incentives that can be used to induce reductions in carbon dioxide emissions?

Question

What are some of the financial incentives that can be used to induce reductions in carbon dioxide emissions?

Answer 1

If you can come up with clean technology that is cheaper than the dirty stuff then you create a very good incentive.

For electricity the best way to do that would be to hold all power sources to the same standard at which point you'll find that everything but nuclear is too expensive (if they can even reach the safety of nuclear, solar PV might be able to but that's about the most expensive power source we have right now (only an RTG can beat it for cost and only in the inner solar system)).

With transportation fuels the current high prices have provided an incentive not to use as much with people buying new cars being more likely to pay attention to fuel consumption as well as a move towards smaller cars while those who aren't buying new cars but who drive gas guzzlers are switching to public transport (while those with smaller cars can continue to afford to drive) and airlines are now flying their planes at long range cruise pretty much all the time to save money.

Answer 2

We should seize Al Gore's multi-kilo square foot mansion that consumes more energy than 20 average American homes, and use the money to further research into nuclear fusion technology.

Then we could seize Al Gore's boat, that burns more fuel per hour than four family sedans, and use the money to further clean coal technology.

We could also seize Al Gore's Gulfstream private jet that consumes more fuel flying one-way across the country than a Hummer consumes in an entire year, and use the savings to fund programs to make older homes more energy efficient.

Sounds like a good start to me.

Answer 3

Carbon Credits are been using to do this. To find out more check this article:

Answer 4

The one being applied worldwide at the moment is to tax processes and business that emit CO2.

The intention is that this will encourage alternatives that are currently otherwise excluded from the market due to their $cost.