Lecture
This lecture covers the key concepts of climate policy instruments, including marginal abatement costs, tradable permits, and tax/subsidy approaches. It discusses the criteria for comparing instruments, such as environmental effectiveness, cost-efficiency, equity, and feasibility. Various abatement measures and their costs are explored, emphasizing the importance of cost-efficiency in emissions reduction. The lecture also delves into the global cost of emissions reduction, the allocation of mitigation efforts, and the acceptability of different instruments. Economic instruments like emissions taxes and tradable permits are analyzed for their effectiveness and efficiency in reducing emissions. The lecture concludes with a comparison of different policy instruments, highlighting their environmental effectiveness, cost-efficiency, equity, and feasibility.