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The Economics of Climate Change

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  • Lawrence H. Goulder
  • William A. Pizer

Abstract

Global climate change poses a threat to the well-being of humans and other living things through impacts on ecosystem functioning, biodiversity, capital productivity, and human health. This paper briefly surveys recent research on the economics of climate change, including theoretical insights and empirical findings that offer guidance to policy makers. Section 1 frames the climate change problem and indicates the ways that economic research can address it. Section 2 describes approaches to measuring the benefits and costs associated with reducing greenhouse gas emissions. In Section 3 we discuss the implications of uncertainty for the timing and stringency of policies to address possible climate change. We then present issues related to policy design, including instrument choice (Section 4), flexibility (Section 5), and international coordination (Section 6). The final section offers general conclusions.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11923.

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Date of creation: Jan 2006
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Publication status: published as Blume, Lawrence and Steven Durlauf (eds.) The New Palgrave Dictionary of Economics, Palgrave MacMillan, Ltd., May 2008.
Handle: RePEc:nbr:nberwo:11923

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Citations

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Cited by:
  1. Pindyck, Robert S., 2006. "Uncertainty in Environmental Economics," Working paper 442, Regulation2point0.
  2. Xiao Chen & Alan Woodland, 2013. "International trade and climate change," International Tax and Public Finance, Springer, vol. 20(3), pages 381-413, June.
  3. Frankel, Jeffrey, 2007. "Formulas for Quantitative Emission Targets," Working Paper Series rwp07-011, Harvard University, John F. Kennedy School of Government.
  4. Omar O. Chisari, 2010. "Notes on Optimal Growth, Climate Change Calamities, Adaptation and Mitigation," IDB Publications 6526, Inter-American Development Bank.
  5. Hans Gersbach & Ralph Winkler, 2007. "On the Design of Global Refunding and Climate Change," CER-ETH Economics working paper series 07/69, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich, revised Jul 2007.
  6. Gersbach Hans, 2012. "Contractual Democracy," Review of Law & Economics, De Gruyter, vol. 8(3), pages 823-851, December.
  7. Hans Gersbach, 2007. "The Global Refunding System and Climate Change," CER-ETH Economics working paper series 07/62, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.

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