Working Paper: NBER ID: w21711
Authors: Garth Heutel; Juan Moreno-Cruz; Katharine Ricke
Abstract: This article reviews and evaluates the nascent literature on the economics of climate engineering. The literature distinguishes between two broad types of climate engineering: solar radiation management and carbon dioxide removal. We review the science and engineering characteristics of these technologies and analyze the implications of those characteristics on economic policy design. We discuss optimal policy and carbon price, inter-regional and inter-generational equity issues, strategic interaction in the design of international environmental agreements, and the sources of risk and uncertainty surrounding these technologies. Along with mitigation and adaptation, climate engineering technologies can be incorporated into future domestic and global climate policy design. More research on the topic is needed.
Keywords: Climate Engineering; Solar Radiation Management; Carbon Dioxide Removal; Climate Policy
JEL Codes: Q54
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| solar radiation management (SRM) technologies (Q54) | costs of mitigating climate change risks (Q54) |
| solar radiation management (SRM) (Q54) | unintended environmental risks and regional climate changes (Q54) |
| presence of solar radiation management (SRM) (Q54) | optimal carbon price (D41) |
| SRM and CDR (Y80) | traditional abatement methods (Q52) |