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Macroeconomic and Financial Policies for Climate Change Mitigation: A Review of the Literature
Author: Signe Krogstrup and William Oman 1
  • 1 https://isni.org/isni/0000000404811396, International Monetary Fund
Series:
IMF Working Papers
Volume/Issue:
Volume 2019: Issue 185
Language:
English
Publication Date:
04 Sep 2019
DOI:
https://doi.org/10.5089/9781513511955.001
ISBN:
9781513511955
ISSN:
1018-5941
Pages:
58
Keywords:
WP; government failure; policy authorities; Policy tool; mitigation policy; monetary policy tool; Policy instrument; Keywords: climate change; fiscal policy; monetary policy; financial policy; policy framework; policy coordination; Policy mix; policy risk; climate policy gain; distributive policy risk; technology policy; adaptation policy; Climate change; Carbon tax; Climate policy; Greenhouse gas emissions; Public investment and public-private partnerships (PPP); Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Climate change is one of the greatest challenges of this century. Mitigation requires a large-scale transition to a low-carbon economy. This paper provides an overview of the rapidly growing literature on the role of macroeconomic and financial policy tools in enabling this transition. The literature provides a menu of policy tools for mitigation. A key conclusion is that fiscal tools are first in line and central, but can and may need to be complemented by financial and monetary policy instruments. Some tools and policies raise unanswered questions about policy tool assignment and mandates, which we describe. The literature is scarce, however, on the most effective policy mix and the role of mitigation tools and goals in the overall policy framework.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund

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