02615cas a2200337 a 4500 AALejournalIMF022213 230101c9999 xx r poo 0 0eng d 5.00 USD 9781557755964 1018-5941 BD-DhAAL BD-DhAAL Barrett, Philip. Modeling the U.S. Climate Agenda : Macro-Climate Trade-offs and Considerations / Philip Barrett, Katharina Bergant, Jean Chateau, Rui Mano. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The run up to the 26th Climate Change Conference has brought tackling climate change to the fore of global policy making. In this context, the U.S. administration has recently unveiled new climate targets. This paper elaborates on the administration's plans and uses two models developed at the IMF to illustrate key macro-climate trade-offs. First, a model with endogenous fuel-specific technological change shows that subsidies cannot substitute for explicit carbon pricing and that even a moderate carbon tax can greatly economize on the overall fiscal cost of the package. Second, a rich sectoral model shows that there are only very marginal economic costs from front-loading the decarbonization of the power sector but there are large accompanying environmental benefits. Regulations can be effective in the power sector because they provide an appropriate shadow cost to carbon. However, a carbon tax would still be more efficient and easier to administer. Finally, as the economy transitions away from fossil-fueled power generation, there would be a significant reallocation of labor across sectors and locations that would need to be handled carefully to limit the social costs of the transition. Mode of access: Internet Carbon Tax imf Climate Change imf Renewable Resources and Conservation imf Subsidies imf Valuation of Environmental Effects imf Bergant, Katharina. Chateau, Jean. Mano, Rui. IMF Working Papers; Working Paper ; No. 2021/290 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/290/001.2021.issue-290-en.xml IMF e-Library