The objective of this research is to understand how different policy tools could expedite the transition toward a low-carbon economy in a cost-effective manner. The project takes a pragmatic approach to climate change policies, recognizing the need to balance the economic and environmental impacts of such. Ignoring the cost of these policies could not only create a substantial economic burden but also lead to a loss of social mandate. This is one of the greatest risks to the successful implementation of sound climate change policy, which by its nature requires clear and predictable government commitment over the long-term.