53 Pages Posted: 23 May 2009 Last revised: 17 May 2014
Date Written: May 6, 2009
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: global warming damages, mitigation cost, climate policy, instrument choice, technology policy
JEL Classification: Q54, Q48, H23
Suggested Citation: Suggested Citation
Aldy, Joseph E. and Krupnick, Alan and Newell, Richard G. and Parry, Ian W. H. and Pizer, William A., Designing Climate Mitigation Policy (May 6, 2009). RFF Discussion Paper No. 08-16. Available at SSRN: https://ssrn.com/abstract=1408695 or http://dx.doi.org/10.2139/ssrn.1408695