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Negotiations toward a successor to the Kyoto Protocol on climate change have come to a critical point, and domestic climate policies are being developed, as the world seeks to recover from the deepest economic crisis for decades and looks for new sources of sustainable growth. This position paper considers the challenge posed by these two policy imperatives: how to exit from the crisis while developing an effective response to climate change. Blending the objectives of a sustained recovery and effective climate policies presents both challenges and opportunities. Although there are potential “win-win” spending measures conducive to both, the more fundamental linkages and synergies lie in the broader strategies adopted toward each other. Greater climate resilience can promote macroeconomic stability and alleviate poverty; and carbon pricing, essential for mitigation, can contribute to the strengthening of fiscal positions that is expected to be needed in many countries. There are, nevertheless, also difficult trade-offs to face, notably in the somewhat greater caution now warranted in moving to more aggressive emissions pricing. However, the simple policy guidelines for addressing climate issues remain fundamentally unchanged; the need to deploy a range of regulatory, spending, and emissions pricing measures.
Public Finance --- Taxation --- Environmental Economics --- Environmental Conservation and Protection --- Environmental Policy --- Energy and the Macroeconomy --- Environmental Economics: General --- Taxation and Subsidies: Externalities --- Redistributive Effects --- Environmental Taxes and Subsidies --- Fiscal Policy --- National Government Expenditures and Related Policies: General --- Climate --- Natural Disasters and Their Management --- Global Warming --- Environmental Economics: Government Policy --- Public finance & taxation --- Environmental economics --- Climate change --- Environmental policy & protocols --- Carbon tax --- Emissions trading --- Expenditure --- Greenhouse gas emissions --- Climate policy --- Taxes --- Environment --- Environmental impact charges --- Expenditures, Public --- Greenhouse gases --- Environmental policy --- United States
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