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The need for multiple types of information to inform climate change assessment

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  • Toman Michael

    (Lead Economist, Development Research Group, World Bank, 1818 H St., NW, Washington, DC 20433, USA)

Abstract

Many critics of economic analysis of climate change impacts and response options claim that information is needed on ecosystem characteristics as well as on economic values to fully inform decisions about how climate change affects human well-being. Information on the irreversibility of impacts also is important, critics argue, because it relates to how society evaluates implications for intergenerational equity. In addition, because climate change is subject to a large degree of Knightian uncertainty, it is useful to understand both the information available for assessing climate change risks, and how individuals themselves perceive and evaluate risks. The paper discusses rationales for using these types of information as important complements to benefit-cost analysis for evaluating climate change risks and responses. Ideally such information could be available in a “dashboard” for decision makers assessing social and economic impacts, although limits on currently available information are a significant barrier to using that approach.

Suggested Citation

  • Toman Michael, 2014. "The need for multiple types of information to inform climate change assessment," Journal of Benefit-Cost Analysis, De Gruyter, vol. 5(3), pages 469-485, December.
    • Handle: RePEc:bpj:jbcacn:v:5:y:2014:i:3:p:469-485:n:6
    DOI: 10.1515/jbca-2014-9005
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    1. Sussman Fran & Grambsch Anne & Weaver Christopher P. & Li Jia, 2014. "Introduction to a special issue entitled Perspectives on Implementing Benefit-Cost Analysis in Climate Assessment," Journal of Benefit-Cost Analysis, De Gruyter, vol. 5(3), pages 333-346, December.
    2. Weyant John, 2014. "Integrated assessment of climate change: state of the literature," Journal of Benefit-Cost Analysis, De Gruyter, vol. 5(3), pages 377-409, December.
    3. Lempert Robert J., 2014. "Embedding (some) benefit-cost concepts into decision support processes with deep uncertainty," Journal of Benefit-Cost Analysis, De Gruyter, vol. 5(3), pages 487-514, December.
    4. Krutilla,Kerry Mace & Good,David Henning & Toman,Michael A. & Arin,Tijen, 2020. "Implementing Precaution in Benefit-Cost Analysis : The Case of Deep Seabed Mining," Policy Research Working Paper Series 9307, The World Bank.
    5. Sussman, Fran & Grambsch, Anne & Li, Jia & Weaver, Christopher P., 2014. "Introduction to a special issue entitled Perspectives on Implementing Benefit-Cost Analysis in Climate Assessment," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 5(3), pages 333-346, December.
    6. MacGregor, James, 2017. "Determining an optimal strategy for energy investment in Kazakhstan," Energy Policy, Elsevier, vol. 107(C), pages 210-224.
    7. Sussman Fran & Weaver Christopher P. & Grambsch Anne, 2014. "Challenges in applying the paradigm of welfare economics to climate change," Journal of Benefit-Cost Analysis, De Gruyter, vol. 5(3), pages 347-376, December.

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