Steering the climate system: using inertia to lower the cost of policy: Reply†

Derek Lemoine, Ivan Rudik

Research output: Contribution to journalArticle

Abstract

Mattauch et al. (2020) claims that the quantitative conclusions in Lemoine and Rudik (2017)—henceforth, LR17—are not robust to using a climate model consistent with recent scientific results. We observe that LR17 in fact analyzes an extension to a more realistic carbon model that generates an efficient emission tax trajectory very similar to that in Mattauch et al. (2020), and we here show that simplifications in the temperature model of LR17 do not qualitatively affect their policy conclusions. Accounting for inertia reduces the initial emission tax by 42 percent and reduces the present value of abatement cost by 39 percent.

Original languageEnglish (US)
Pages (from-to)1238-1241
Number of pages4
JournalAmerican Economic Review
Volume110
Issue number4
DOIs
StatePublished - Apr 2020

ASJC Scopus subject areas

  • Economics and Econometrics

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