Climate Change Economics: Path to Net-Zero

Gregor Schwerhoff is an economist in the Structural and Climate Policies Division of the IMF's Research Department, specializing in climate policy with a focus on carbon pricing and international cooperation. His research portfolio spans critical areas including the economics of decarbonizing electricity production, energy transition challenges, and climate policy diffusion across U.S. states. Schwerhoff has made significant contributions to the IMF's proposals for an International Carbon Price Floor (ICPF), demonstrating how differentiated carbon pricing could reduce global emissions while maintaining economic competitiveness. His work shows that an ICPF could limit global warming to below 2 degrees Celsius with only a modest impact on global GDP growth. Prior to joining the IMF in 2020, Schwerhoff worked at the World Bank integrating climate economics into macroeconomic modeling, following several years as a climate economics researcher after completing his PhD from the University of Bonn. His expertise in policy sequencing, leadership in climate change mitigation, and the economic implications of various climate policy instruments has established him as a leading voice in shaping international climate policy approaches.

Florence Jaumotte is Division Chief of the Structural and Climate Policies Division in the IMF's Research Department, bringing extensive expertise in climate economics, labor markets, and international macroeconomics. Her research portfolio spans critical areas including climate change mitigation, income inequality, and labor market institutions. Prior to her current role, she worked in the IMF's Multilateral Surveillance Division and World Economic Studies Division, as well as on various country teams, demonstrating her comprehensive understanding of global economic challenges. Her recent work focuses on growth-friendly policies to achieve net zero emissions by 2050 and the macroeconomic implications of climate policies. Jaumotte's academic foundation includes a Ph.D. in Economics from Harvard University, and her career includes valuable experience at the OECD in Paris. Her contributions to economic research encompass various topics including technology diffusion, trade balances, and the relationship between union power and inequality, establishing her as a leading voice in climate economics and policy development at the IMF.