The Cost of Reducing Greenhouse Gas Emissions


Gillingham K, Stock JH. The Cost of Reducing Greenhouse Gas Emissions. Journal of Economic Perspectives. 2018;32 (4) :53-72.
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This paper reviews the cost of various interventions that reduce greenhouse gas emissions. As much as possible we focus on actual abatement costs (dollars per ton of carbon dioxide avoided), as measured by 50 economic studies of programs over the past decade, supplemented by our own calculations. We distinguish between static costs, which occur over the lifetime of the project, and dynamic costs, which incorporate spillovers. Interventions or policies that are expensive in a static sense can be inexpensive in a dynamic sense if they induce innovation and learning-by-doing.

Last updated on 11/08/2018