Designing Climate Mitigation Policy
Publication information:
Aldy, J. E., Krupnick, A. J., Newell, R. G., Parry, I. W. H., & Pizer, W. A. (2010). Designing Climate Mitigation Policy. Journal of Economic Literature, 48(4), 903-934. (Original work published 2010)
Abstract
This paper provides (for the nonspecialist) a highly streamlined discussion of the main issues, and controversies, in the design of climate mitigation policy. The first part of the paper discusses how much action to reduce greenhouse gas emissions at the global level is efficient under both the cost-effectiveness and welfare-maximizing paradigms. We then discuss various issues in the implementation of domestic emissions control policy, instrument choice, and incentives for technological innovation. Finally, we discuss alternative policy architectures at the international level.