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The economics of mitigating climate change: What can we know?

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  • Rosen, Richard A.
  • Guenther, Edeltraud

Abstract

The long-term economics of mitigating climate change over the long run has played a high profile role in the most important analyses of climate change in the last decade, namely the Stern Report and the IPCC's Fourth Assessment. However, the various kinds of uncertainties that affect these economic results raise serious questions about whether or not the net costs and benefits of mitigating climate change over periods as long as 50 to 100years can be known to such a level of accuracy that they should be reported to policymakers and the public. This paper provides a detailed analysis of the derivation of these estimates of the long-term economic costs and benefits of mitigation. It particularly focuses on the role of technological change, especially for energy efficiency technologies, in making the net economic results of mitigating climate change unknowable over the long run.

Suggested Citation

  • Rosen, Richard A. & Guenther, Edeltraud, 2015. "The economics of mitigating climate change: What can we know?," Technological Forecasting and Social Change, Elsevier, vol. 91(C), pages 93-106.
    • Handle: RePEc:eee:tefoso:v:91:y:2015:i:c:p:93-106
    DOI: 10.1016/j.techfore.2014.01.013
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