While the recent climate change legislation passed in the House of Representatives represents the first time Congress has approved a bill targeted at global warming, its passage does not come without controversy. The focus of the bill is a cap-and-trade system in which the total amount of emission pollution is capped and companies can trade pollution permits. Over time, the cap decreases, theoretically driving up the cost of emissions and encouraging companies to develop cleaner technologies’; however, the system has been criticized as a tax by Republicans.

In his book A Question of Balance, William Nordhaus seeks out a solution to the problems of climate change through economic analysis. He provides a thorough breakdown of the costs and benefits of a variety of policy options. The economic models that he uses provide insight into the complexity of the problem and the difficulty in finding a solution. We hope Nordhaus’ next book will detail ways to avoid the wasteful “compromises, carve-outs, concessions and out-and-out gifts” that seem to accompany the passage of every bill.