October 24, 2011

The Design and Implementation of U.S. Climate Policy: An Introduction

by Don Fullerton and Catherine Wolfram

- While economic models have already proven useful to analyze big picture questions about climate policy such as the choice between a carbon tax or cap-and-trade permit system, the 19 chapters in this book show how economic models also are useful to address the many remaining smaller questions that arise as policy is implemented. For example, chapters consider: the tradeoffs policymakers confront in deciding whether to implement the policy upstream on energy producers or downstream on energy users; how to monitor and enforce climate policy; how Federal actions might interact with climate policies at other levels of government or with other non-climate policies; the distributional effects of different policy variations; policies that might impact particular sectors, including residential energy use, agriculture and transportation; and specific questions regarding offsets, trade, innovation, and adaptation.

Don Fullerton and Catherine Wolfram (2011). "The Design and Implementation of U.S. Climate Policy: An Introduction." NBER Working Paper No. 17499, Oct 2011.