Robert M. La Follette School of Public Affairs

Cost Containment for Climate Policy Requires Linked Technology Policies

Safety valves, discretionary advisory boards, and other cost containment mechanisms enhance the political feasibility of stringent climate policy by limiting firms' and households' exposures to higher than anticipated costs associated with reducing greenhouse gas emissions. However, cost containment comes at a price; it increases the risk of climate-related damages and it also discourages investments in low-carbon innovation. A revision of this paper is forthcoming in Climatic Change under the title "Cost Containment in Climate Policy and Incentives for Technology Development" and available on SpringerLink.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2008-010
  • Author(s): Gregory F. Nemet