
How Should We Join Climate Change to Energy Policy?
R. Scott Kemp, lecturing in MIT's course 22.04 Social Problems of Nuclear Energy, examines how economists and policymakers connect climate goals to energy policy. He lays out cost-benefit analysis, the role of markets, and Pareto optimality as frameworks for evaluating policy choices, then argues that zero-carbon targets, treated as absolute mandates, can lead to worse outcomes than approaches that weigh carbon reduction against other costs and benefits. The session runs eighty-one minutes and builds on the course's broader examination of nuclear energy's place in a decarbonizing economy, using economic theory rather than engineering detail as its main tool. Kemp works through the logic of why a strict zero-carbon rule can be economically inefficient, pressing students to think about trade-offs rather than treating emissions targets as self-evidently correct policy.