The economic cost of climate change mitigation
In other entries and pages of the site, I discussed the costs and financing need of the proposed plan. It is important, however, to keep in mind the difference between the financial and economic costs. The proposed scheme’s financial costs are the payments that are made to participants by the Fund to incentivize them to curb emissions. These payments need to be financed by raising capital from private investors who will require a return, which adds to these financial costs. O