Sensitivity studies have been performed to evaluate the errors resulting from ignoring polarization in analyzing spectroscopic measurements of the O 2 A band from space, using the Orbiting Carbon Observatory (OCO) as a test case. An 11-layer atmosphere, with both gas and aerosol loading, and bounded from below by a lambertian reflecting surface, was used for the study. The numerical computations were performed with a plane-parallel vectorized discrete ordinate radiative transfer code. Beam and viewing geometry, surface reflectance and aerosol loading were varied one at a time to evaluate and understand the individual errors. Different behavior was observed in the line cores and the continuum because of the different paths taken by the photons in the two cases. The errors were largest when the solar zenith angle was high, and the aerosol loading and surface reflectance low. To understand the effect of neglecting polarization on CO 2 column retrievals, a linear error analysis study was performed on simulated measurements from the OCO spectral regions, viz. the 1.61 and 2.06 μm CO 2 bands and the O 2 A band. It was seen that neglecting polarization could introduce errors as high as 10 ppm, which is substantially larger than the required retrieval precision of ∼2 ppm. A variety of approaches, including orders of scattering, spectral binning and the use of lookup tables are being explored to reduce the errors.