Optimal climate policy as if the transition matters
Working paper by Emanuele Campiglio, Simon Dietz, Frank Venmans on 14 Dec 2022
How best to make the transition from a high- to low-carbon economy remains open for debate, involving complex dynamics that go beyond basic models of emissions abatement. It is these dynamics that the authors aim to analyse with the model they develop in this paper, showing that it is optimal to repurpose and strand a substantial amount of capital.