Macroeconomic and Financial Policies for Climate Change Mitigation: A Review of the Literature

September 4, 2019

Preview Citation

Format: Chicago

Signe Krogstrup, and William Oman. Macroeconomic and Financial Policies for Climate Change Mitigation: A Review of the Literature, (USA: International Monetary Fund, 2019) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Climate change is one of the greatest challenges of this century. Mitigation requires a large-scale transition to a low-carbon economy. This paper provides an overview of the rapidly growing literature on the role of macroeconomic and financial policy tools in enabling this transition. The literature provides a menu of policy tools for mitigation. A key conclusion is that fiscal tools are first in line and central, but can and may need to be complemented by financial and monetary policy instruments. Some tools and policies raise unanswered questions about policy tool assignment and mandates, which we describe. The literature is scarce, however, on the most effective policy mix and the role of mitigation tools and goals in the overall policy framework.

Subject: Carbon tax, Climate change, Climate policy, Environment, Expenditure, Greenhouse gas emissions, Public investment and public-private partnerships (PPP), Taxes

Keywords: Adaptation policy, Carbon tax, Climate change, Climate policy, Climate policy gain, Distributive policy risk, Financial policy, Fiscal policy, Global, Government failure, Greenhouse gas emissions, Keywords: climate change, Mitigation policy, Monetary policy, Monetary policy tool, Policy authorities, Policy coordination, Policy framework, Policy instrument, Policy mix, Policy risk, Policy tool, Public investment and public-private partnerships (PPP), Technology policy, WP

Publication Details

Pages:

58
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2019/185
Stock No:

WPIEA2019185
ISBN:

9781513511955
ISSN:

1018-5941

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