This paper presents a three-part strategy for addressing climate change and promoting energy security. First, the government should price carbon and oil correctly so that the private sector has an incentive to reduce their use. Second, the government should increase and refocus public investments on basic research and on long-run speculative energy technologies. Finally, the United States should lead by example and engage major emitting nations in an international response to climate change.
Furman, J., J.E. Bordoff, M.A. Manasi and P. Noel. "An Economic Strategy to Address Climate Change and Promote Energy Security." Brookings, Hamilton Project Discussion Paper. Nov 2007.