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Model, Model on the Screen, What's the Cost of Going Green?

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  • Dowlatabadi, Hadi
  • Boyd, David R.
  • MacDonald, Jamie

Abstract

How much a policy is expected to cost and who bears the brunt of that cost play a significant role in the debates that shape regulations. We do not have a good track record of predicting costs and their ultimate distribution, but systematic reviews of past assessments have identified some of the factors that lead to errors. A wide range of expected costs of climate policy have been hotly debated, but all are likely to be wrong. This does not mean that we should continue a debate using ill-informed analyses. On the contrary, we need early small experiments to shed light on key unknowns. Environmental stewardship is a long-term challenge and an adaptive regulatory approach promises to inform policy targets and improve controls through sequential regulatory phases that promote: innovation, flexibility and diffusion of best technologies.

Suggested Citation

  • Dowlatabadi, Hadi & Boyd, David R. & MacDonald, Jamie, 2004. "Model, Model on the Screen, What's the Cost of Going Green?," Discussion Papers 10806, Resources for the Future.
    • Handle: RePEc:ags:rffdps:10806
    DOI: 10.22004/ag.econ.10806
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    References listed on IDEAS

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