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Climate policy

Hassler, John, Krusell, Per and Nycander, Jonas (2016) Climate policy. Economic Policy, 31 (87). 503 - 558. ISSN 0266-4658

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Identification Number: 10.1093/epolic/eiw007

Abstract

This paper makes suggestions for climate policy and defends them based on recent research in economics and the natural sciences. In summary: (i) the optimal carbon tax is rather modest; (ii) the key climate threat is coal; (iii) a carbon tax is to be preferred over a quantity-based system; (iv) the optimal tax on carbon does not appreciably harm growth; (v) subsidies to green technology are beneficial for the climate only to the extent that they make green technology outcompete coal; and (vi) a carbon tax is politically feasible.

Item Type: Article
Official URL: https://academic.oup.com/economicpolicy
Additional Information: © 2016 CEPR, CESifo, Sciences Po
Divisions: Economics
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
H Social Sciences > HJ Public Finance
JEL classification: Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters
Date Deposited: 13 Jul 2020 13:15
Last Modified: 20 Oct 2020 06:05
URI: http://eprints.lse.ac.uk/id/eprint/105625

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