Countries with low marginal costs of abating carbon emissions may have high total costs, and vice versa, for a given climate mitigation policy. This may help to explain different countries' policy stances on climate mitigation. We hypothesize that, under a common percentage cut in emissions intensity relative to business as usual (BAU), countries with higher...

This paper reviews the typical elements of a technology-focused climate policy (currently adopted by the USA and Australia under the umbrella of Asia-Pacific Partnership on Clean Development and Climate-AP6) against the elements of an effective and efficient ideal climate policy. It argues that the technology-focused climate policy falls far short of an ideal climate policy.