The Economic Consequences of Delays in US Climate Policy

A delay in the implementation of U.S. climate policy, whether the policy is an EPA regulation or a carbon tax, could mean more stringent policies are necessary later. Brookings scholars have conducted new economic modeling to compare the economic outcomes of modest climate policy action now with the potential consequences of more stringent policies later, including effects on consumption, investment, and labor markets.

On June 3, Economic Studies at Brookings hosted an event to present the results of this study on the economic effects of delaying implementation of U.S. climate policy. Nonresident Senior Fellows Warwick McKibbin and Peter Wilcoxen and Fellow and Policy Director Adele Morris presented the new research, which was followed by a panel discussion.