By Charles S. Pearson
Economics and the problem of world Warming is a balanced, rigorous, and accomplished research of the position of economics in confronting worldwide warming, the principal environmental factor of the twenty-first century. It avoids a technical exposition so as to succeed in a large viewers and is brand new in its theoretical and empirical underpinnings. it's addressed to all who've a few wisdom of monetary suggestions and a major curiosity in how economics can (and can't) assist in crafting weather coverage. The e-book is prepared round 3 critical questions. First, can benefit-cost research advisor us in surroundings warming pursuits? moment, what options and regulations are least expensive? 3rd, and such a lot tough, can a world contract be solid among wealthy and terrible, North and South? whereas financial ideas are most efficient within the research, they're positioned inside of an available moral and political matrix. The booklet serves as a primer for the post-Kyoto period.
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Extra resources for Economics and the Challenge of Global Warming
Uncertainty, Climate Change, and the Global Economy. NBER Working Paper 14426. Weart, S. (1997). The Discovery of the Risk of Global Warming. Physics Today 50: 34–50. 2 The Role of Benefit Cost in Climate Policy Benefit-cost (BC) analysis comes in two flavors. The standard, “vanilla” flavor examines the monetized costs and benefits of a project or policy. If the benefits exceed the costs, the project is cleared to proceed. This approach, however, is best suited for projects for which there is only one feasible scale or level of intensity.
It may be useful in a political context to choose a nice round number as a focal point to rally support for strong action. Two degrees, if taken seriously, has very little slack. And we must remember the grave imperfections in the alternative approach, which is benefit cost. Summary BC analysis survives this litany of frailties but just barely. Its weaknesses include the dubious use of the KH hypothetical compensation test in an international and inter-generational context, the likely compounding of error through a long chain of scientific and economic assumptions, the inadequacy of its traditional tools for accommodating deep uncertainty and possible catastrophe, questionable ability to deal with thresholds, tipping points, and irreversibilities, and a neglect Meinshausen et al.
New York: Universe Books. Meinshausen, M. et al. (2009). Greenhouse-gas Emission Targets for Limiting Global Warming to 2°C. Nature 458: 1158–63. Mishan, E. (1988). Cost Benefit Analysis: An Informal Introduction. 4th ed. London: Unwin Hyman. Neumayer, E. (2007). A Missed Opportunity: The Stern Report Fails to Tackle the Issue of Non-substitutable Natural Capital. Global Environmental Change 17: 297–301. Norgaard, R. and R. Howarth (1992). Economics, Ethics and the Environment. In Energy Environment Connection, J.
Economics and the Challenge of Global Warming by Charles S. Pearson