Article

The Portfolio of Economic Policies Needed to Fight Climate Change

Olivier Jean Blanchard, Christian Gollier, and Jean Tirole

Abstract

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.

Keywords

climate change; carbon price; green R&D; carbon border adjustment; climate finance;

JEL codes

  • D61: Allocative Efficiency • Cost–Benefit Analysis
  • F18: Trade and Environment
  • H23: Externalities • Redistributive Effects • Environmental Taxes and Subsidies
  • Q37: Issues in International Trade
  • Q54: Climate • Natural Disasters • Global Warming

Reference

Olivier Jean Blanchard, Christian Gollier, and Jean Tirole, The Portfolio of Economic Policies Needed to Fight Climate Change, Annual Review of Economics, vol. 15, September 2023, pp. 689–722.

Published in

Annual Review of Economics, vol. 15, September 2023, pp. 689–722