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Putting a price on carbon is critical for climate change policy. Increasingly, policymakers combine multiple policy tools to achieve this, for example by complementing cap-and-trade schemes with a carbon tax, or with a feed-in tariff. Often, the motivation for doing so is to limit undesirable fluctuations in the carbon price, either from rising too high or falling too low. This paper reviews the implications for the carbon price of combining cap-and-trade with other policy instruments. We find that price intervention may not always have the desired effect. Simply adding a carbon tax to an existing cap-and-trade system reduces the carbon price in the market to such an extent that the overall price signal (tax plus carbon price) may remain unchanged. Generous feed-in tariffs or renewable energy obligations within a capped area have the same effect: they undermine the carbon price in the rest of the trading regime, likely increasing costs without reducing emissions. Policymakers wishing to support carbon prices should turn to hybrid instruments — that is, trading schemes with price-like features, such as an auction reserve price — to make sure their objectives are met.

We examine the relative attractions of a carbon tax, a "pure" cap-and-trade system, and a "hybrid" option (a cap-and-trade system with a price ceiling and/or price floor). We show that the various options are equivalent along more dimensions than often are recognized. In addition, we bring out important dimensions along which the approaches have very different impacts, including some dimensions that have received little attention in prior literature. Although no option dominates the others, a key finding is that exogenous emissions pricing (whether through a carbon tax or through the hybrid option) has a number of important attractions over pure cap and trade. Beyond helping prevent price volatility and reducing expected policy errors in the face of uncertainties, exogenous pricing helps avoid problematic interactions with other climate policies and helps avoid potential wealth transfers to oil-exporting countries.

The seminal contributions of William Nordhaus to scholarship on the long-run macroeconomics of global climate change are clear. Much more challenging to identify are the impacts of Nordhaus and his research on public policy in this domain. We examine three conceptually distinct pathways for that influence: his personal participation in the policy world; his research’s direct contribution to the formulation and evaluation of public policy; and his research’s indirect role informing public policy. Many of the themes that emerge in this assessment of the contributions of one of the most important economists to have worked in the domain of climate change analysis apply more broadly to the roles played by other leading economists in this and other policy domains.

In recent decades, the surge in greenhouse gas emissions has given rise to an increase in climate risk-related development finance. This research delves into the effect of renewable energy and climate risk-related development finance on greenhouse gas emissions in the BRICS region. Panel regression estimates were employed to uncover several noteworthy findings. Firstly, a slight yet significant surge in greenhouse gas emissions resulted from increased climate risk-related development finance. Secondly, augmented climate risk-related mitigation finance corresponded with a noteworthy upsurge in renewable energy usage. Thirdly, greater renewable energy consumption resulted in a considerable reduction in greenhouse gas emissions. Lastly, amplified renewable energy consumption alleviated the impact of climate risk-related mitigation finance on greenhouse gas emissions. These findings emphasize the necessity of efficiently utilizing climate finance in generating renewable energies like wind, biomass, geothermal, hydroelectric and solar energies. Additionally, it is recommended that benefactor nations and officials ensure a regular and uninterrupted flow of climate risk-related development mitigation finance to emerging nations.

Development financing focusing on climate hazards has become necessary in recent decades as a result of the rise in emissions of greenhouse gases (GHG). This study investigates how the Congo Basin’s greenhouse gas emissions are affected by using renewable energy sources and climate risk-related development financing. Multiple conclusions are drawn from panel regression analysis. First, there’s a slight but substantial rise in GHG emissions when climate risk-related development finance increases. Second, a boost in climate risk-related mitigation finance substantially encourages the introduction of renewable energy. Third, greater utilization of renewable energy results in a diminution in GHG emissions. Finally, greater utilization of the renewable energy minimizes the influence of the climate risk-related development finance. The research recommends creating a monitoring system to guarantee the effective use of climate funding for generating renewable energy sources, including wind, biomass, geothermal, hydropower, and solar energy. Additionally, it urges donor economies and authorities to provide emerging economies with a supplementary consistent and steady flow of financing for development mitigation connected to climate risk.

The seminal contributions of William Nordhaus to scholarship on the long-run macroeconomics of global climate change are clear. Much more challenging to identify are the impacts of Nordhaus and his research on public policy in this domain. We examine three conceptually distinct pathways for that influence: his personal participation in the policy world; his research’s direct contribution to the formulation and evaluation of public policy; and his research’s indirect role informing public policy. Many of the themes that emerge in this assessment of the contributions of one of the most important economists to have worked in the domain of climate change analysis apply more broadly to the roles played by other leading economists in this and other policy domains.

The role of social enterprises, in combating climate change by providing decentralized energy to rural communities in transitioning economies, is an emerging field of research. Social enterprises can play an important role in meeting Sustainable Development Goals (SDGs), suggesting that they are effective conduits for developing climate change policy on adoption and mitigation strategies. Interviews with social enterprises that are providers of sustainable energy solutions, like SELCO Solar Light Pvt. Ltd. (SELCO), in transitioning economies like India, show how they can improve the quality of life of rural communities and their livelihoods. This chapter looks at the role played by SELCO in dealing with climate change policy adoption and mitigation, and how it has played an important role in enhancing the quality of life of rural households and livelihoods through sustainable energy solutions and services. The chapter provides insights into the role of the social enterprise in shaping climate change policies in transitioning economies.