Emissions mitigation policies affect prices, including prices for fossil fuels and agricultural products. Consumer prices for coal and natural gas are expected to rise when climate policy is implemented, while oil prices may be reduced or remain the same in comparison to a no policy scenario....

The MIT Emissions Prediction and Policy Analysis model is applied to synthetic policies that match key attributes of a set of cap-and-trade proposals being considered by the U.S. Congress in spring 2007. The bills fall into two groups: one specifies emissions reductions of 50% to 80% below 1990...