Journal
ANNUAL REVIEW OF ECONOMICS
Volume 15, Issue -, Pages 689-722Publisher
ANNUAL REVIEWS
DOI: 10.1146/annurev-economics-051520-015113
Keywords
climate change; carbon price; green R&D; carbon border adjustment; climate finance
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Climate change is a significant threat to human existence. Carbon pricing and green R&D support are considered effective tools, although their implementation can be improved. Other policies such as standards, bans, and targeted subsidies also play a role, but their implementation needs to be coherent and careful.
Climate change poses an existential threat. Theoretical and empirical research suggest that carbon pricing and green R&D support are the right tools, but their implementation can be improved. Other policies, such as standards, bans, and targeted subsidies, also all have a role to play, but they have often been incoherent, and their implementation is delicate.
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