Emission reduction costs money as it forces companies and households to use more expensive energy and dearer technology. #climateeconomics
The economy can be fully decarbonized at negligible cost if policy design is smart and abatement is gradual. #climateeconomics
Differences between abatement cost estimates are large, reflecting different assumptions on emissions without policy. #climateeconomics
Models also differ on the degree of adjustability of the economy, and the responsiveness of R&D to climate policy. #climateeconomics
The two degrees target may be physically impossible. It is infeasible without stringent policy in all large countries now. #climateeconomics
An initially low but rising carbon tax stabilizes the climate. A stringent target requires a high initial carbon tax. #climateeconomics
Capital stock turnover, technological progress, discount rate and carbon cycle argue for a slow start to abatement. #climateeconomics
Abatement costs money in a perfect market. In an imperfect market, abatement costs money too. #climateeconomics
Climate policy may reduce market imperfections and this would at least partly offset the cost of abatement. #climateeconomics
The revenue of a carbon tax or permit auction could be used to improve the structure of the tax system. #climateeconomics
Taxes are more distortionary if the tax base is narrower, price elasticities higher, and initial tax level higher. #climateeconomics
In EU (US), the tax burden should be shifted from labour (capital) to emissions. This may even stimulate growth. #climateeconomics
Smart climate policy requires a political system capable of delivering smart scal reform. This is in short supply. #climateeconomics
Chapter 3 of #climateeconomics amazon.co.uk/Climate-Econom…
Slides, videos, quizzes, data, further reading on #climateeconomics sites.google.com/site/climateco…
