A new paper published in the Journal of Environmental Economics and Management studies the negative impacts of global warming in the form of non-market damages and damages on productivity growth and labour-augmenting technical progress. The implications for optimal climate policy and the effects of population growth and depreciation of capital are introduced in an analytically tractable theoretical model. The study also considers the case when governments use lower discount rates than the private sector. Finally, the authors consider how the rule for the optimal carbon price must be modified to allow for a temperature cap, and what this implies for stranded oil and gas reserves. Analytical results are illustrated with a range policy simulations.