òòò½Íø Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Does Unilateral Decarbonization Pay for Itself?
òòò½Íø Papers and Proceedings
(pp. 369–73)
Abstract
This paper shows that unilateral decarbonization pays for itself in large economies. We estimate economic damages based on global temperature shocks and combine them with a climate-economy model to construct domestic costs of carbon: $226 per ton for the United States and $216 per ton for the European Union. When compared to marginal abatement costs, these values imply over 80 percent unilateral decarbonization for both economies, an order of magnitude more than under conventional damages estimated with local temperature shocks.Citation
Bilal, Adrien, and Diego R. Känzig. 2025. "Does Unilateral Decarbonization Pay for Itself?" òòò½Íø Papers and Proceedings 115: 369–73. DOI: 10.1257/pandp.20251035Additional Materials
JEL Classification
- L94 Electric Utilities
- L98 Industry Studies: Utilities and Transportation: Government Policy
- Q41 Energy: Demand and Supply; Prices
- Q48 Energy: Government Policy
- Q54 Climate; Natural Disasters and Their Management; Global Warming
- Q58 Environmental Economics: Government Policy