Making climate policy more like monetary policy: Calibrating climate policy through corporate solvency
We propose that corporate solvency metrics be used as an objective tool for policymakers to calibrate the optimal magnitude of climate policies, and thereby achieve greater emissions abatement at lower social cost. In particular, solvency metrics could calibrate the optimal severity of climate polic...
| Main Authors: | , |
|---|---|
| Format: | Report |
| Published: |
Smith School of Enterprise and the Environment
2015
|
| _version_ | 1797060583252557824 |
|---|---|
| author | Caldecott, B Dericks, G |
| author_facet | Caldecott, B Dericks, G |
| author_sort | Caldecott, B |
| collection | OXFORD |
| description | We propose that corporate solvency metrics be used as an objective tool for policymakers to calibrate the optimal magnitude of climate policies, and thereby achieve greater emissions abatement at lower social cost. In particular, solvency metrics could calibrate the optimal severity of climate policies and/or the generosity of industrial compensation. Policymakers currently monitor and regulate certain aspects of corporate solvency for financial firms (such as capital reserve requirements) in order to reduce the risk of bankruptcy while simultaneously maintaining profitability. In a similar vein, policymakers could do likewise with respect to climate change policies which target carbon-intensive firms. |
| first_indexed | 2024-03-06T20:19:07Z |
| format | Report |
| id | oxford-uuid:2d328c05-644f-4a56-9845-f0599d27b40a |
| institution | University of Oxford |
| last_indexed | 2024-03-06T20:19:07Z |
| publishDate | 2015 |
| publisher | Smith School of Enterprise and the Environment |
| record_format | dspace |
| spelling | oxford-uuid:2d328c05-644f-4a56-9845-f0599d27b40a2022-03-26T12:41:25ZMaking climate policy more like monetary policy: Calibrating climate policy through corporate solvencyReporthttp://purl.org/coar/resource_type/c_93fcuuid:2d328c05-644f-4a56-9845-f0599d27b40aSymplectic Elements at OxfordSmith School of Enterprise and the Environment2015Caldecott, BDericks, GWe propose that corporate solvency metrics be used as an objective tool for policymakers to calibrate the optimal magnitude of climate policies, and thereby achieve greater emissions abatement at lower social cost. In particular, solvency metrics could calibrate the optimal severity of climate policies and/or the generosity of industrial compensation. Policymakers currently monitor and regulate certain aspects of corporate solvency for financial firms (such as capital reserve requirements) in order to reduce the risk of bankruptcy while simultaneously maintaining profitability. In a similar vein, policymakers could do likewise with respect to climate change policies which target carbon-intensive firms. |
| spellingShingle | Caldecott, B Dericks, G Making climate policy more like monetary policy: Calibrating climate policy through corporate solvency |
| title | Making climate policy more like monetary policy: Calibrating climate policy through corporate solvency |
| title_full | Making climate policy more like monetary policy: Calibrating climate policy through corporate solvency |
| title_fullStr | Making climate policy more like monetary policy: Calibrating climate policy through corporate solvency |
| title_full_unstemmed | Making climate policy more like monetary policy: Calibrating climate policy through corporate solvency |
| title_short | Making climate policy more like monetary policy: Calibrating climate policy through corporate solvency |
| title_sort | making climate policy more like monetary policy calibrating climate policy through corporate solvency |
| work_keys_str_mv | AT caldecottb makingclimatepolicymorelikemonetarypolicycalibratingclimatepolicythroughcorporatesolvency AT dericksg makingclimatepolicymorelikemonetarypolicycalibratingclimatepolicythroughcorporatesolvency |