Climate Policy and the Recovery

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 co...

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Bibliographic Details
Main Author: Keen, Michael
Other Authors: Jones, Benjamin
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2009
Series:IMF Staff Position Notes
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Environmental Economics: General 
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653 |a Environmental policy & protocols 
653 |a Environmental Economics 
653 |a Environmental economics 
653 |a Public finance & taxation 
653 |a Natural Disasters and Their Management 
653 |a Taxes 
653 |a Environmental impact charges 
653 |a Environment 
653 |a Climate 
653 |a Fiscal Policy 
653 |a Climate change 
653 |a Environmental Taxes and Subsidies 
653 |a Carbon tax 
653 |a National Government Expenditures and Related Policies: General 
653 |a Climate policy 
653 |a Environmental Economics: Government Policy 
653 |a Greenhouse gas emissions 
653 |a Expenditure 
653 |a Global Warming 
653 |a Expenditures, Public 
653 |a Energy and the Macroeconomy 
653 |a Emissions trading 
653 |a Taxation 
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520 |a 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