Climate Policy Intervention
In this video, Amit talks about the need for government intervention to tackle the climate change crisis. He further talks about market failure, externalities, the case for governments to intervene through Pigouvian taxes such as carbon tax and new regulation.
Overview
Climate change is clearly an example of market failure, and policy intervention is evident in order to achieve socially optimal levels. This can be achieved through a variety of methods such as a carbon tax, new standards and regulations, or the increased role of financial markets.
Key learning objectives:
What is market failure?
What are the two important market failures related to greenhouse gas emissions?
How can policy intervention support transition from a high to low carbon economy?
How can financial markets play a role in intervention?
Summary
Expert
Amit Kara
Amit is Associate Research Director for Global Macroeconomic Analysis at NIESR. He is a macroeconomist with experience in central banking, investment banking, commercial banking and corporate credit rating. He has most recently worked at HSBC where he helped design the forward economic guidance input for IFRS 9. Amit is currently working on two substantial research projects related to the macroeconomic impact of climate change.
