As decarbonization and climate policy are gaining relevance in the European Union (EU) energy policy, the present paper seeks to present both priorities and challenges for of the EU energy transition. As priorities, we outline the key targets and initiatives proposed and set by the European...

Countries have pledged to stabilize global warming at a 1.5 to 2°C increase. Either target requires reaching net zero emissions before the end of the century, which implies a major transformation of the economic system. This paper reviews the literature on how policymakers can design climate...

We construct an overlapping generations model in which the choice between dirty and clean technology hinges on the economy's capital stock, susceptible to climate-induced depreciation. The process of capital accumulation contributes to environmental emissions, yet their intensity can be...