A rapidly growing empirical literature seeks to estimate the costs of future climate change from time series variation in weather. I formally analyze the consequences of a change in climate for economic outcomes. I show that those consequences are driven by changes in the distribution of...

I show that commonly proposed emission taxes are not optimal for controlling climate change: they can achieve zero emissions but cannot induce negative emissions. The first-best policy charges firms period by period for leaving a stock of carbon in the atmosphere, not just for injecting carbon...

A rapidly growing empirical literature seeks to estimate the costs of future climate change from time series variation in weather. I formally analyze the consequences of a change in climate for economic outcomes. I show that those consequences are driven by changes in the distribution of...