Climate Economics with Arvid Viaene
A research-focused podcast on the economics of climate change and air pollution. Episodes are released every two weeks on Tuesday at 6 am CET. Episodes will be either expert interviews or solo explorations of key issues. Hosted by Dr. Arvid Viaene, a climate economist with a PhD from the University of Chicago. He has done research on the impacts of climate change on agriculture and mortality. His research on climate-related mortality has been published in The Quarterly Journal of Economics, and he has advised the European Commission on the impacts of climate policy on firm competitiveness.
Climate Economics with Arvid Viaene
#24 - Dr. Luis Garicano - Rethinking EU Climate Policy: Trade-offs, Carbon Pricing, and Public Support
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Europe has pioneered carbon pricing through the EU ETS—and now through CBAM. But even the best-designed climate policy runs into a hard constraint: trade-offs are real, and public support can evaporate if the costs are hidden or moralized.
In this episode, I’m joined by Dr. Luis Garicano (LSE professor; former Member of the European Parliament), who argues for a more honest climate policy conversation—one that keeps the strengths of price-based tools like the ETS and CBAM, while being more cautious with mandates and target-driven rule stacks.
What you’ll learn
- Why “win-win” climate narratives can backfire when households face higher energy prices
- Carbon pricing vs mandates: where each works, and where mandates can create backlash with limited climate gains
- How EU institutions and political incentives shape policy design—and make course-correction hard
- Why “public support” is a core climate policy input, not an afterthought
Guest
Dr. Luis Garicano is a professor at the London School of Economics and a former Member of the European Parliament (2019–2022), where he worked on major economic policy issues and helped shape early CBAM thinking.
(If you enjoyed the EU policy arc on this show, this episode pairs naturally with the CBAM episodes and EU ETS history episodes.)
For questions, comments or suggestions, you can contact me at arvid.viaene.ce@gmail.com