Climate change: how to slow it down

Per Krusell

introduced by Massimiliano Vatiero

There is broad scientific consensus that the global climate is changing, and that this is a result of human activities. There is also a rather broad political consensus, by now deeply rooted in our populations, that we need to intervene: we need to decrease our emissions of greenhouse gases. But how to induce our economies to curb emissions is much less clear. Economics offers tools to help the world in this respect: economists have systematic methods for comparing different policy paths, because - by design - our science is about understanding how economies respond to policy interventions. This lecture discusses what economists have contributed so far to fulfill this important task, along with some promising avenues for further research.

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