Problem:
Occupational Reading Assessment Congress recently introduced a number of climate change bills that contain proposals for a domestic emissions pricing system, such as a cap-and-trade system or a carbon tax. Through greenhouse gas emissions pricing, governments create an incentive for parties to lower their greenhouse gas emissions by placing a cost on them. However, imposing costs on energy-intensive industries in the United States could potentially place them at a disadvantage to foreign competitors. In addition, emissions pricing could have negative environmental consequences, such as "carbon leakage," whereby emissions reductions in the United States are replaced by increases in production and emissions in less regulated countries. As the Congress considers the design of a domestic emissions pricing system, a key challenge will be balancing the need to reduce greenhouse gas emissions with the need to address the competitiveness of U.S. industries. With which of the following would the author of the passage most likely disagree? Estimating the potential effects of domestic emissions pricing for industries in the United States is complex. Policies to mitigate climate change will have important economic, social, and environmental implications. Domestic emissions pricing could produce environmental benefits by encouraging U.S. firms to reduce their emissions. O Domestic emissions pricing could boost U.S. firms' competitiveness, especially in energy-intensive industries where firms compete internationally. O There could be increased emissions abroad if production were to increase in other countries as a result of a U.S. climate policy.