Climate Policy Instruments: Efficiency and Equity

This lecture by the instructor covers the comparison and choice criteria for climate policy instruments, focusing on cost-efficiency, effectiveness, equity, and feasibility. It discusses the concept of marginal abatement cost, the importance of environmental effectiveness, and the challenges in implementing different policy instruments. The lecture also explores the cost-efficient allocation of mitigation efforts, the global cost of emissions reduction, and the role of economic instruments such as emissions taxes and tradable emissions quotas. Additionally, it delves into the assessment of voluntary approaches in climate policy and the considerations for regulating emissions. The lecture concludes by highlighting the advantages and limitations of economic instruments in reducing emissions and the practical policy questions involved in selecting the appropriate regulatory measures.