This paper presents and discusses an integrated set of policies designed to reduce carbon emissions in the US. This policy package also aims to promote environmental quality, particularly by reducing emissions of criteria air pollutants, to reduce US dependence on imported oil, and to induce technological innovation and diffusion in energy production and consumption. The policy package analyzed is found to reduce economy-wide carbon emissions by 10% relative to 1990 levels in 2010, and by 45% relative to 1990 levels in 2030. Emissions of criteria pollutants are also significantly reduced, as are petroleum imports by the US. Moreover, the policy package yields net savings for the US, equal to $19 billion on an annual levelized basis through 2010, and results in 800,000 additional jobs nationwide by 2010. While the overall findings from the policy package analysis are robust, the results should be taken as indicative, rather than precisely predictive, owing to uncertainties in future costs, prices, technology performance and consumer behavior.