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Reexamining the economics of aerosol geoengineering

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  • J. Bickel
  • Shubham Agrawal

Abstract

In this paper, we extend the work of Goes, Tuana, and Keller (Climatic Change 2011 ; GTK) by reexamining the economic benefit, of aerosol geoengineering. GTK found that a complete substitution of geoengineering for CO 2 abatement fails a cost-benefit test over a wide range of scenarios regarding (i) the probability that such a program would be aborted and (ii) the economic damages caused by geoengineering itself. In this paper, we reframe the conditions under which GTK assumed geoengineering would/could be used. In so doing, we demonstrate that geoengineering may pass a cost-benefit test over a wide range of scenarios originally considered by GTK. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • J. Bickel & Shubham Agrawal, 2013. "Reexamining the economics of aerosol geoengineering," Climatic Change, Springer, vol. 119(3), pages 993-1006, August.
    • Handle: RePEc:spr:climat:v:119:y:2013:i:3:p:993-1006
    DOI: 10.1007/s10584-012-0619-x
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    References listed on IDEAS

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    1. Gollier, Christian & Weitzman, Martin L., 2010. "How should the distant future be discounted when discount rates are uncertain?," Economics Letters, Elsevier, vol. 107(3), pages 350-353, June.
    2. Robert Lempert & Michael Schlesinger & Steven Bankes & Natalia Andronova, 2000. "The Impacts of Climate Variability on Near-Term Policy Choices and the Value of Information," Climatic Change, Springer, vol. 45(1), pages 129-161, April.
    3. Gollier, Christian, 2009. "Should we Discount the Far-Distant Future at its Lowest Possible Rate?," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-14.
    4. Marlos Goes & Nancy Tuana & Klaus Keller, 2011. "The economics (or lack thereof) of aerosol geoengineering," Climatic Change, Springer, vol. 109(3), pages 719-744, December.
    5. Weitzman, Martin L., 1998. "Why the Far-Distant Future Should Be Discounted at Its Lowest Possible Rate," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 201-208, November.
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    Cited by:

    1. Johannes Emmerling & Vassiliki Manoussi & Anastasios Xepapadeas, 2016. "Climate Engineering under Deep Uncertainty and Heterogeneity," Working Papers 2016.52, Fondazione Eni Enrico Mattei.
    2. Schwanitz, Valeria Jana, 2021. "Evaluating integrated assessment models of global climate change - From philosophical aspects to practical examples," SocArXiv 63yd8, Center for Open Science.
    3. Khara D. Grieger & Tyler Felgenhauer & Ortwin Renn & Jonathan Wiener & Mark Borsuk, 2019. "Emerging risk governance for stratospheric aerosol injection as a climate management technology," Environment Systems and Decisions, Springer, vol. 39(4), pages 371-382, December.
    4. Baran Doda, 2014. "Why is geoengineering so tempting?," GRI Working Papers 170, Grantham Research Institute on Climate Change and the Environment.
    5. Manoussi, Vassiliki & Xepapadeas, Anastasios & Emmerling, Johannes, 2018. "Climate engineering under deep uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 94(C), pages 207-224.
    6. Heutel, Garth & Moreno-Cruz, Juan & Shayegh, Soheil, 2018. "Solar geoengineering, uncertainty, and the price of carbon," Journal of Environmental Economics and Management, Elsevier, vol. 87(C), pages 24-41.
    7. Johannes Emmerling & Massimo Tavoni, 2018. "Climate Engineering and Abatement: A ‘flat’ Relationship Under Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(2), pages 395-415, February.
    8. Max Meulemann, 2017. "An Empirical Assessment Of Components Of Climate Architectures," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 8(04), pages 1-36, November.
    9. Tommi Ekholm & Hannele Korhonen, 2016. "Climate change mitigation strategy under an uncertain Solar Radiation Management possibility," Climatic Change, Springer, vol. 139(3), pages 503-515, December.
    10. repec:awi:wpaper:540 is not listed on IDEAS
    11. Moreno-Cruz, Juan B. & Smulders, Sjak, 2017. "Revisiting the economics of climate change: the role of geoengineering," Research in Economics, Elsevier, vol. 71(2), pages 212-224.
    12. Dovern, Jonas & Harnisch, Sebastian & Klepper, Gernot & Platt, Ulrich & Oschlies, Andreas & Rickels, Wilfried, 2015. "Radiation Management: Gezielte Beeinflussung des globalen Strahlungshaushalts zur Kontrolle des anthropogenen Klimawandels," Kiel Discussion Papers 549/550, Kiel Institute for the World Economy (IfW Kiel).
    13. Heutel, Garth & Moreno-Cruz, Juan & Shayegh, Soheil, 2016. "Climate tipping points and solar geoengineering," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PB), pages 19-45.
    14. Turaj S. Faran & Lennart Olsson, 2018. "Geoengineering: neither economical, nor ethical—a risk–reward nexus analysis of carbon dioxide removal," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 18(1), pages 63-77, February.
    15. Ahlvik, Lassi & Iho, Antti, 2018. "Optimal geoengineering experiments," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 148-168.
    16. Timo Goeschl & Daniel Heyen & Juan Moreno-Cruz, 2013. "The Intergenerational Transfer of Solar Radiation Management Capabilities and Atmospheric Carbon Stocks," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(1), pages 85-104, September.

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