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Economic Analysis of Global Climate Change Policy: A Primer

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Stavins, Robert (Harvard U and Resources for the Future)

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Abstract

Global climate change--perhaps even more than other environmental problems--can be addressed successfully only with a solid understanding of its economic dimensions. This paper, prepared as an introduction to the economics section of a forthcoming book from the Pew Center on Global Climate Change, provides a primer for non-economists on how economic analysis can be brought to bear on three broad questions: what will be the benefits of global climate policies; what will be their costs; and how can this information about alternative policies be assimilated in ways that are ultimately most useful for decision makers? Because of the magnitude of the anticipated benefits and costs of addressing the threat of global climate change, its great time horizons, massive uncertainties, and physical and economic irreversibilities, public policy in this area presents significant challenges to economic research. Nevertheless, a firm foundation is provided by the existing literature from nearly three decades of theoretical and empirical economic analysis.

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Paper provided by Harvard University, John F. Kennedy School of Government in its series Working Paper Series with number rwp00-003.

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Date of creation: Oct 2000
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Handle: RePEc:ecl:harjfk:rwp00-003

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  1. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June. [Downloadable!] (restricted)
  2. Stavins, Robert, 2000. "Experience with Market-Based Environmental Policy Instruments," Working Paper Series rwp00-004, Harvard University, John F. Kennedy School of Government. [Downloadable!]
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  3. Goulder, Lawrence H. & Mathai, Koshy, 2000. "Optimal CO2 Abatement in the Presence of Induced Technological Change," Journal of Environmental Economics and Management, Elsevier, vol. 39(1), pages 1-38, January. [Downloadable!] (restricted)
  4. Toman, Michael & Kolstad, Charles, 2000. "The Economics of Climate Policy," Discussion Papers dp-00-40, Resources For the Future. [Downloadable!]
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  5. Arrow, Kenneth J. & Cropper, Maureen L. & Eads, George C. & Hahn, Robert W. & Lave, Lester B. & Noll, Roger G. & Portney, Paul R. & Russell, Milson & Schmalensee, Richard & Smith, V. Kerry & Stavins, , 1997. "Is there a role for benefit-cost analysis in environmental, health, and safety regulation?," Environment and Development Economics, Cambridge University Press, vol. 2(02), pages 195-221, May. [Downloadable!]
  6. Morgenstern, Richard & Harrington, Winston & Nelson, Per-Kristian, 1999. "On the Accuracy of Regulatory Cost Estimates," Discussion Papers dp-99-18, Resources For the Future. [Downloadable!]
  7. Toman, Michael & Shogren, Jason, 2000. "Climate Change Policy," Discussion Papers dp-00-22, Resources For the Future. [Downloadable!]
  8. James Hammitt, 2000. "Are The Costs of Proposed Environmental Regulations Overestimated? Evidence from the CFC Phaseout," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 16(3), pages 281-302, July. [Downloadable!] (restricted)
  9. Kolstad, Charles D., 1996. "Fundamental irreversibilities in stock externalities," Journal of Public Economics, Elsevier, vol. 60(2), pages 221-233, May. [Downloadable!] (restricted)
  10. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March. [Downloadable!] (restricted)
  11. Jaffe Adam B. & Stavins Robert N., 1995. "Dynamic Incentives of Environmental Regulations: The Effects of Alternative Policy Instruments on Technology Diffusion," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages S43-S63, November. [Downloadable!] (restricted)
  12. William D. Nordhaus, 1982. "How Fast Should We Graze the Global Commons?," Cowles Foundation Discussion Papers 615, Cowles Foundation, Yale University. [Downloadable!]
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  13. Adam B. Jaffe & Richard G. Newell & Robert N. Stavins, 2000. "Technological Change and the Environment," NBER Working Papers 7970, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Goulder Lawrence H., 1995. "Effects of Carbon Taxes in an Economy with Prior Tax Distortions: An Intertemporal General Equilibrium Analysis," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages 271-297, November. [Downloadable!] (restricted)
  15. Stavins, Robert, 1997. "Policy Instruments for Climate Change: How Can National Governments Address a Global Problem?," Discussion Papers dp-97-11, Resources For the Future. [Downloadable!]
  16. Robert N. Stavins, 1999. "The Costs of Carbon Sequestration: A Revealed-Preference Approach," American Economic Review, American Economic Association, vol. 89(4), pages 994-1009, September. [Downloadable!] (restricted)
  17. Stavins, Robert & Jaffe, Adam & Newell, Richard, 1998. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," Discussion Papers dp-98-12-rev, Resources For the Future. [Downloadable!]
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  18. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October. [Downloadable!] (restricted)
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  19. Stavins, Robert & Whitehead, Bradley, 1996. "The Next Generation of Market-Based Environmental Policies," Discussion Papers dp-97-10, Resources For the Future. [Downloadable!]
  20. Cornell, N. & Noll, Roger G. & Weingast, B., . "Safety Regulation," Working Papers 122, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  21. Palmer, Karen & Oates, Wallace E & Portney, Paul R, 1995. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 119-32, Fall. [Downloadable!] (restricted)
  22. Hassett, Kevin A. & Metcalf, Gilbert E., 1995. "Energy tax credits and residential conservation investment: Evidence from panel data," Journal of Public Economics, Elsevier, vol. 57(2), pages 201-217, June. [Downloadable!] (restricted)
  23. Stavins, Robert & Hahn, Robert, 1999. "What Has Kyoto Wrought? The Real Architecture of International Tradable Permit Markets," Discussion Papers dp-99-30, Resources For the Future. [Downloadable!]
  24. Hanemann, W. Michael, 1989. "Information and the concept of option value," Journal of Environmental Economics and Management, Elsevier, vol. 16(1), pages 23-37, January. [Downloadable!] (restricted)
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  1. Stavins, Robert, 2004. "Can an Effective Global Climate Treaty Be Based on Sound Science, Rational Economics, and Pragmatic Politics?," Discussion Papers dp-04-28, Resources For the Future. [Downloadable!]
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