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The threat posed by climate change has not yet been matched by international agreements and economic policies that can deliver sharp reductions in green-house gas emissions. The Kyoto Protocol has not received support from the USA, and ratification has been delayed by Russia's reluctance to sign up- both in part because of its costs. Few European countries are on course to meet their own national targets. Nonetheless, even if fully implemented, the Kyoto Protocol would make little;difference to the carbon concentrations in the atmosphere. In consequence, there is a search for a post-Kyoto framework, new institutions and new economic policies to spread the costs and meet them in an economically efficient way. Carbon taxes and emissions trading are, in particular, being;established in a number of developed countries. This volume provides an overview of the economics of climate change, the policy options, and the scope for making significant carbon reductions.