Rethinking the costs related to global warming: A survey of the issues
AbstractOne approach to the economic analysis of global warming seeks to balance the costs of damage from or adaptation to it with the costs of mitigating it. The costs of adaptation and damage have been estimated using techniques of environmental evaluation, but are subject to a wide margin of uncertainty. The costs of mitigation, principally by reducing the emissions of CO 2, have been estimated using different kinds of economic models, some of the results of which have suggested that very little abatement of carbon emissions is justified before the costs of abatement exceed the benefits of it in terms of foregone damage and adaptation costs. The paper analyses the extent to which this conclusion is a function of the modelling assumptions and techniques used, rather than likely practical outcomes, with regard to the models' treatment of unemployed resources, revenue recycling, prior distortions in the economy due to the tax system and possible dynamic effects from the introduction of a carbon-energy tax. It concludes that, with different and arguably more appropriate treatment of the above issues, especially when the secondary benefits of reducing CO 2 emissions are also taken into account, it is not clear that even substantial reductions in the use of fossil fuels will incur net costs, especially if there is the prospect of even moderate costs from global warming. Copyright Kluwer Academic Publishers 1995
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.
Volume (Year): 6 (1995)
Issue (Month): 3 (October)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100263
Global warming; greenhouse gas abatement; carbon tax;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Graciela Chichilnisky & Geoffrey Heal, 1993.
"Global Environmental Risks,"
Journal of Economic Perspectives,
American Economic Association, vol. 7(4), pages 65-86, Fall.
- Nordhaus, William D, 1991. "To Slow or Not to Slow: The Economics of the Greenhouse Effect," Economic Journal, Royal Economic Society, vol. 101(407), pages 920-37, July.
- Ingham, Alan & Ulph, Alistair, 1991. "Market-based instruments for reducing CO2 emissions : The case of UK manufacturing," Energy Policy, Elsevier, vol. 19(2), pages 138-148, March.
- Scott, M.F., 1992. "A New View of Economic Growth," World Bank - Discussion Papers 131, World Bank.
- Andrew Dean & Peter Hoeller, 1992. "Costs of Reducing CO2 Emissions: Evidence from Six Global Models," OECD Economics Department Working Papers 122, OECD Publishing.
- Pearce, David W, 1991. "The Role of Carbon Taxes in Adjusting to Global Warming," Economic Journal, Royal Economic Society, vol. 101(407), pages 938-48, July.
- Dowlatabadi, Hadi & Morgan, M. Granger, 1993. "A model framework for integrated studies of the climate problem," Energy Policy, Elsevier, vol. 21(3), pages 209-221, March.
- repec:fth:coluec:645 is not listed on IDEAS
- William W. Hogan, 1990. "Comments on Manne and Richels: "CO2 Emission Limits: An Economic Analysis for the USA"," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 75-86.
- Yamaji, Kenji & Matsuhashi, Ryuji & Nagata, Yutaka & Kaya, Yoichi, 1993. "A study on economic measures for CO2 reduction in Japan," Energy Policy, Elsevier, vol. 21(2), pages 123-132, February.
- Gaskins, Darius W, Jr & Weyant, John P, 1993. "Model Comparisons of the Costs of Reducing CO2 Emissions," American Economic Review, American Economic Association, vol. 83(2), pages 318-23, May.
- Ballard, Charles L & Shoven, John B & Whalley, John, 1985. "General Equilibrium Computations of the Marginal Welfare Costs of Taxes in the United States," American Economic Review, American Economic Association, vol. 75(1), pages 128-38, March.
- Schelling, Thomas C, 1992. "Some Economics of Global Warming," American Economic Review, American Economic Association, vol. 82(1), pages 1-14, March.
- Alan S. Manne & Richard G. Richels, 1990. "CO2 Emission Limits: An Economic Cost Analysis for the USA," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 51-74.
- Ulph, A. & Ulph, D., 1994. "Global warming: why irreversibility may not require lower current emissions of greenhouse gases," Discussion Paper Series In Economics And Econometrics 9402, Economics Division, School of Social Sciences, University of Southampton.
- Hope, Chris & Anderson, John & Wenman, Paul, 1993. "Policy analysis of the greenhouse effect : An application of the PAGE model," Energy Policy, Elsevier, vol. 21(3), pages 327-338, March.
- Cline, William R, 1991. "Scientific Basis for the Greenhouse Effect," Economic Journal, Royal Economic Society, vol. 101(407), pages 904-19, July.
- Nordhaus, William D., 1993.
"Rolling the 'DICE': an optimal transition path for controlling greenhouse gases,"
Resource and Energy Economics,
Elsevier, vol. 15(1), pages 27-50, March.
- William D. Nordhaus, 1992. "Rolling the 'Dice': An Optimal Transition Path for Controlling Greenhouse Gases," Cowles Foundation Discussion Papers 1019, Cowles Foundation for Research in Economics, Yale University.
- repec:fth:harver:1487 is not listed on IDEAS
- Dale W. Jorgenson, 1991. "Productivity and Economic Growth," NBER Chapters, in: Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth, pages 19-118 National Bureau of Economic Research, Inc.
- Ulph, A. & Ulph, D., 1994. "Who gains from learning about global warming," Discussion Paper Series In Economics And Econometrics 9407, Economics Division, School of Social Sciences, University of Southampton.
- William W. Hogan & Dale W. Jorgenson, 1991. "Productivity Trends and the Cost of Reducing CO2 Emissions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 67-86.
- John Whalley & Randall Wigle, 1991. "Cutting CO2 Emissions: The Effects of Alternative Policy Approaches," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 109-124.
- Jean-Marc Burniaux & John P. Martin & Giuseppe Nicoletti & Joaquim Oliveira Martins, 1991. "The Costs of Policies to Reduce Global Emissions of CO2: Initial Simulation Results with GREEN," OECD Economics Department Working Papers 103, OECD Publishing.
- Jorgenson, Dale W. & Wilcoxen, Peter J., 1993. "Energy the environment, and economic growth," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 3, chapter 27, pages 1267-1349 Elsevier.
- Peck, Stephen C. & Teisberg, Thomas J., 1993. "Global warming uncertainties and the value of information: an analysis using CETA," Resource and Energy Economics, Elsevier, vol. 15(1), pages 71-97, March.
- Jorgenson, Dale W. & Wilcoxen, Peter J., 1993. "Reducing US carbon emissions: an econometric general equilibrium assessment," Resource and Energy Economics, Elsevier, vol. 15(1), pages 7-25, March.
- Manne, Alan S. & Richels, Richard G., 1991. "Buying greenhouse insurance," Energy Policy, Elsevier, vol. 19(6), pages 543-552.
- Hans Asbjørn Aaheim & Kristin A. & Hans Seip, 1999. "Climate Change and Local Pollution Effects – An Integrated Approach," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 4(1), pages 61-81, March.
- Olivier Godard, 1996. "Economic Expertise And Decision-Making In Controversial Universes," Post-Print halshs-00625518, HAL.
- Olivier Godard, 1997. "Social Decision-Making under Scientific Controversy, Expertise, and the Precautionary Principle," Post-Print halshs-00624027, HAL.
- Azar, Christian & Sterner, Thomas, 1996. "Discounting and distributional considerations in the context of global warming," Ecological Economics, Elsevier, vol. 19(2), pages 169-184, November.
- Sébastien Dessus & David O'Connor, 2003. "Climate Policy without Tears CGE-Based Ancillary Benefits Estimates for Chile," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(3), pages 287-317, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.