Steve DeCanio is professor emeritus of economics at the University of California, Santa Barbara. From 1986 to 1987, DeCanio was senior staff economist on the president’s Council of Economic Advisers, and in 2007 he participated in the Intergovernmental Panel on Climate Change that shared the Nobel Peace Prize.

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Worldwide, there is a growing consensus that strong action is needed to reduce carbon emissions. European Union (EU) governments have begun large-scale policy initiatives to do so; the United States lags behind but has finally begun a serious debate about proposals for climate legislation. Yet at their best, both EU and proposed U.S. policies …

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