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Economics vs. Physical-based Metrics for Relative Greenhouse Gas Valuations

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Author Info
Johansson, Daniel J.A. () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Abstract

A range of alternatives to the Global Warming Potential (GWP) have been suggested in the scientific literature. One of these alternative metrics that has received significant attention is the cost-effective relative valuation of greenhouse gases. However, this metric is based on complex optimising integrated assessment models that are far from transparent to the general scientist or policymaker. Here we present a new analytic metric, the Cost-Effective Temperature Potential (CETP) which is based on an approximation of the cost-effective relative valuation. We show that this metric shares many similarities with the purely physical metric, Global Temperature change Potential (GTP), but that the CETP performs much better as an approximation to the cost-effective relative valuation.

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File URL: http://hdl.handle.net/2077/20346
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 363.

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Length: 22 pages
Date of creation: 02 Jun 2009
Date of revision:
Handle: RePEc:hhs:gunwpe:0363

Note: Division of Physical Resource Theory, Department of Energy and Environment, Chalmers University of Technology, Gothenburg, Sweden
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Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: GWP; GTP; cost-effectiveness; stabilization; climate change;

Find related papers by JEL classification:
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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This page was last updated on 2009-12-9.


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