October 3, 2011

Using the Market to Address Climate Change: Insights from Theory and Experience

by Joseph Aldy and Robert N. Stavins

- We examine alternative designs of carbon taxes, cap-and-trade, and clean energy standards. We note that the U.S. political response to possible market-based approaches to climate policy has been and will continue to be largely a function of issues and structural factors that transcend the scope of environmental and climate policy.

Aldy, J., and R.N. Stavins (2011). "Using the Market to Address Climate Change: Insights from Theory and Experience." HKS Faculty Research Working Paper Series RWP11-038, Sept 2011.