On the political economy of environmental survival versus collapse. Clarifying the work done by Tinbergen & Hueting vis-à-vis Weitzman, Nordhaus and Stern
AbstractThe Stern Review (2006) on the economics of climate change presented a cost estimate of perhaps even 20% of national income and subsequently was criticized by Weitzman and Nordhaus and others in a discussion that centered on the use of the calculus of variations and the choice of the proper rate of discount. The Tinbergen & Hueting (1991) approach deals with the wider environmental collapse, is not formulated in the form of the calculus of variations, and arrives at a sustainable level of national income of about 50% of national income. The Tinbergen & Hueting (TH) approach appears to be neglected by Weitzman, Nordhaus and Stern (WNS) but appears to be better grounded in economic theory, mathematically richer and empirically more relevant. This paper clarifies the misunderstandings and omissions in the work by WNS on environmental economics.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 10001.
Date of creation: 13 Aug 2008
Date of revision:
Social welfare; national income; sustainable national income; economic growth; sustainable economic growth; sustainability; environment;
Find related papers by JEL classification:
- E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
- Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
- A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-21 (All new papers)
- NEP-ENV-2008-08-21 (Environmental Economics)
- NEP-HPE-2008-08-21 (History & Philosophy of Economics)
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.:
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- William D. Nordhaus, 2006. "The "Stern Review" on the Economics of Climate Change," NBER Working Papers 12741, National Bureau of Economic Research, Inc.
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