Mitigation: Carbon Pricing, Leakage, and Reallocation

Macroeconomists know that our economic activity influences – and is influenced by – the natural environment in which it is embedded, but we have learned that modelling those effects is far from easy. The scientific consensus around climate change is strong, but there’s not similar agreement over appropriate economic policies to deal with it. On the eve of COP 30, a new review of macroeconomics and climate shows how far we have come but also points out where the gaps in our knowledge are.

Adrien Bilal of Stanford University tells Tim Phillips about the state of research, its missing links, and the limits of what economists can do to influence the policy agenda.