No. 1530 - ABC of models for the study of climate policies
This paper reviews the literature on econometric models that capture the interaction between the economy and climate (known as Integrated Assessment Models, IAMs). These models allow us to assess the costs and benefits of policies aimed at reducing greenhouse‑gas emissions, which are responsible for climate change. Since greenhouse gases can remain in the atmosphere for over a millennium, it is essential to adopt policies that cut down, and ideally bring to zero, the emissions and their effects.
Integrated assessment models generally indicate that: the costs of the policies required to eliminate greenhouse‑gas emissions are manageable and would not dramatically reduce global growth prospects; only policies that affect the price of fossil‑fuel energy sources can bring greenhouse‑gas emissions to zero, while monetary policies can contribute only marginally; strategies that set a cap on temperature increases or set a specific date by which emissions must be eliminated are suboptimal.
YouTube
X - Banca d'Italia
Linkedin
RSS
E-mail Alert
