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Designing Climate Mitigation Policy
Joseph E. Aldy, Alan J. Krupnick, Richard G. Newell, Ian W.H. Parry, William A. Pizer
RFF Discussion Paper 08-16 | May 2009
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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.
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