Greenhouse gasesmitigation: global externalities and short-termism

摘要

Policies designed to control greenhouse gases imply domestic tradeoffs and internationalexternalities, which lead to both domestic and international conflicts, influencing their feasibilityand implementations. Our paper investigates two quantitative aspects within thisdebate. We intend to quantify the impact of: (a) the internalization of international externalities;and (b) the damage associated with a short-term view of climate policies. In thisrespect, we adopt the innovative (in this field) idea of model predictive control to formalizemoving-horizon policy strategies and, thus, to build counterfactuals characterized by adifferent horizon for all policymakers.