Working Paper: NBER ID: w15022
Authors: Joseph E. Aldy; Alan J. Krupnick; Richard G. Newell; Ian W.H. Parry; William A. Pizer
Abstract: This paper provides an exhaustive review of critical issues in the design of climate mitigation policy by pulling together key findings and controversies from diverse literatures on mitigation costs, damage valuation, policy instrument choice, technological innovation, and international climate policy. We begin with the broadest issue of how high assessments suggest the near and medium term price on greenhouse gases would need to be, both under cost-effective stabilization of global climate and under net benefit maximization or Pigouvian emissions pricing. The remainder of the paper focuses on the appropriate scope of regulation, issues in policy instrument choice, complementary technology policy, and international policy architectures.
Keywords: No keywords provided
JEL Codes: H23; Q48; Q54
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| greenhouse gas emissions (Q54) | climate change mitigation policies (Q58) |
| emissions pricing (D49) | economic growth (O49) |
| emissions pricing (D49) | climate stabilization (Q54) |
| price of CO2 emissions (Q31) | stabilization targets (450 ppm) (E63) |
| price of CO2 emissions (Q31) | stabilization targets (550 ppm) (E63) |
| future emissions growth (O44) | coordinated international response to emissions pricing (F42) |