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The Contribution of Economics to the Analysis of Climate Change and Uncertainty: A Survey of Approaches and Findings

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Author Info
Sonja Peterson
Abstract

There is a general agreement that (a) climate change is one of the most serious environmental problems, that (b) the analysis of climate change is confronted with a large degree of uncertainty and (c) that these uncertainties need to be taken into account to arrive at meaningful policy recommendations. The main contribution of economics to this interdisciplinary task is to provide formal frameworks and techniques for analyzing climate policy in the context of uncertainty. The aim of this paper is to give a comprehensive survey of existing approaches and findings and thus to give a broad picture of what economics has contributed and can contribute to the debate.

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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1212.

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Length: 36 pages
Date of creation: May 2004
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Handle: RePEc:kie:kieliw:1212

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Related research
Keywords: Climate change uncertainty survey modeling

Find related papers by JEL classification:
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
C60 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - General
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information

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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.:
  1. Kolstad, Charles D., 1996. "Learning and Stock Effects in Environmental Regulation: The Case of Greenhouse Gas Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 1-18, July. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. Hoel, Michael & Karp, Larry S., 1999. "Taxes and quotas for a stock pollutant with multiplicative uncertainty," CUDARE Working Paper Series 870, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy, revised 1999. [Downloadable!]
    Other versions:
  4. Plambeck, Erica L & Hope, Chris, 1996. "PAGE95 : An updated valuation of the impacts of global warming," Energy Policy, Elsevier, vol. 24(9), pages 783-793, September. [Downloadable!] (restricted)
  5. Ha-Duong, Minh, 1998. "Quasi-option value and climate policy choices," Energy Economics, Elsevier, vol. 20(5-6), pages 599-620, December. [Downloadable!] (restricted)
    Other versions:
  6. Pizer, William A., 1999. "The optimal choice of climate change policy in the presence of uncertainty," Resource and Energy Economics, Elsevier, vol. 21(3-4), pages 255-287, August. [Downloadable!] (restricted)
  7. Gollier, Christian & Jullien, Bruno & Treich, Nicolas, 2000. "Scientific progress and irreversibility: an economic interpretation of the 'Precautionary Principle'," Journal of Public Economics, Elsevier, vol. 75(2), pages 229-253, February. [Downloadable!] (restricted)
  8. Geoffrey Heal & Bengt Kriström, 2002. "Uncertainty and Climate Change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 3-39, June. [Downloadable!] (restricted)
  9. Lange, Andreas, 2002. "Climate change and the irreversibility effect : combining expected utility and MaxiMin," ZEW Discussion Papers 02-29, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  10. Henry, Claude, 1974. "Investment Decisions Under Uncertainty: The "Irreversibility Effect."," American Economic Review, American Economic Association, vol. 64(6), pages 1006-12, December. [Downloadable!] (restricted)
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