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- W137130120 abstract "AbstractChapter 3 presents the economic rationale behind climate change and introduce the crucial concept of externalities. Using simple and tractable models, this chapter explains the key dynamics behind environmental pollutions and the tragedy of the commons plaguing the climate, the most iconic public good. The chapter then proceeds to detail the three key economic instruments to remedy the issue of climate pollution, taxes, subsidies and permits, detailing their respective advantages and limits. A special emphasis is put on the existence and influence of uncertainty, a central concept that prepares the key concepts of real options and environmental investments presented in Chap. 4. Finally, the chapter touches upon the complex relationship between economic growth and the environment and describes possible alternatives to mitigate climate while conserving economic momentum.KeywordsMarginal CostAbatement CostIntermediate GoodCarbon PriceSocial OptimumThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves." @default.
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- W137130120 date "2013-01-01" @default.
- W137130120 modified "2023-09-24" @default.
- W137130120 title "The Economics of Mitigation Strategies" @default.
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- W137130120 doi "https://doi.org/10.1007/978-3-642-36623-9_4" @default.
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