In the concluding section of the paper, Wallach looks ahead and says, ". . .without straining our imaginations, suppose that our current state of gridlocked divided government persists into 2013 and beyond, with at least one of the House, Senate, or White House unwilling to allow either comprehensive climate change legislation or simple removal of EPA's authority over GHGs. In this case, state and regional efforts will probably grow in importance, even as they suffer from periodic attrition. Federal regulations will have a major impact, reducing GHGs far less efficiently than a cap and trade system or a carbon tax. EPA will probably do its best to keep the scope of its rules fairly narrow, "tailoring" the CAA in many ways to prevent regulation from engulfing all small businesses. This continuation of the status quo is legally troubling, economically sub-optimal, and of dubious efficacy -- but it probably doesn't portend the economic disaster Republicans sometimes warn of. On the other hand, if environmentalist litigation successfully forces the EPA to create NAAQS for GHGs and thereafter to require states to tackle global carbon levels in their SIPs, the whole machinery of the CAA could be gummed up with little compensating benefit. . .
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