Working Paper: NBER ID: w11923
Authors: Lawrence H. Goulder; William A. Pizer
Abstract: Global climate change poses a threat to the well-being of humans and other living things through impacts on ecosystem functioning, biodiversity, capital productivity, and human health. This paper briefly surveys recent research on the economics of climate change, including theoretical insights and empirical findings that offer guidance to policy makers. Section 1 frames the climate change problem and indicates the ways that economic research can address it. Section 2 describes approaches to measuring the benefits and costs associated with reducing greenhouse gas emissions. In Section 3 we discuss the implications of uncertainty for the timing and stringency of policies to address possible climate change. We then present issues related to policy design, including instrument choice (Section 4), flexibility (Section 5), and international coordination (Section 6). The final section offers general conclusions.
Keywords: climate change; economic policy; emissions trading; carbon tax; mitigation strategies
JEL Codes: D62; H23; N50; Q20
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| emissions trading programs (Q58) | reduction in greenhouse gas emissions (Q54) |
| carbon taxes (H23) | reduction in greenhouse gas emissions (Q54) |
| optimal carbon tax rate (H21) | reduction in greenhouse gas emissions (Q54) |
| technology policy (O38) | technological advancements (O33) |
| technological advancements (O33) | reduction in greenhouse gas emissions (Q54) |
| dynamically adjusting carbon taxes (H23) | better environmental outcomes (Q56) |