Policy Options for Addressing Climate Change
- Aug 10, 2021 3:20 pm GMT
Economists (including myself) have long recommended carbon-pricing policy instruments – principally carbon taxes or carbon cap-and-trade systems – for achieving meaningful reductions of carbon dioxide (CO2) emissions in large and complex economies. However, such economy-wide policies are not in favor in the United States within the Biden administration, despite some interest in the Congress. Rather, a set of alternative (second-best) options – such as a Clean Electricity Standard (CES) – are receiving more attention.
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