2018 has seen one of the hottest summers in Europe since weather records began.[1] Increasing weather extremes, rising sea levels and Arctic melting are now clearly visible consequences of human-induced warming.[2] Climate change is not a theory. It is a fact. While only one dimension of the human cost, the consequences in macroeconomic terms look set to be large. Without further mitigation, cumulative emissions pose significant risks of economic disruption.[3] While there is a wide recognition that environmental externalities should be primarily corrected by first-best policies, such as taxes[4], all authorities, ... (full story)