How would you design a good climate policy?

Minghao Qiu

As 2016 will be the warmest year on record three times in a row (Scientific American), more people are getting concerned about global climate change and believe that something should be done. However, if you are a designer for climate policy, what do you think is important and how will you design a good policy? This session will introduce some of the basic concepts in environmental economics and environmental policy, examine the policy options in dealing with climate change and guide the audience to think about what is important in the process. This discussion will help understand both domestic and international environmental policies in practice. We will discuss the following topics: 1) What is special about environmental policy: externalities, public goods, and the “Tragedy of the Commons" ; 2) What are the policy options: command-and‑control policy, cap‑and‑trade, licensing, carbon tax, and subsidies; 3) What are the pros and cons of the policy options: social cost, cost‑benefit analysis, and co‑benefit.