Energy Market Consequences of an Emerging U.S. Carbon Management Policy

Emerging energy and climate policies in the United States are accelerating the pace of technological changes and prompting calls for alternative energy and stricter energy efficiency measures. These trends raise questions about the future demand for fossil fuels, such that some energy-producing nations are reluctant to invest heavily in the expansion of production capacity. The abundance of shale gas resources in North America could allow the United States to utilize more gas in its energy mix as a means of enhancing energy security and reducing CO2 emissions. However, this will only occur if U.S. policies promote and allow the benefits provided by natural gas to be realized. To examine these issues and the emerging trends in U.S. energy and climate policy, the Baker Institute investigated the North American and global oil and natural gas market consequences of emerging U.S. policies to regulate greenhouse gas emissions, as well as the potential role of alternative energy in the U.S. economy.

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