IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v6y1995i3p231-277.html
   My bibliography  Save this article

Rethinking the costs related to global warming: A survey of the issues

Author

Listed:
  • Paul Ekins

Abstract

One approach to the economic analysis of global warming seeks to balance the costs of damage from or adaptation to it with the costs of mitigating it. The costs of adaptation and damage have been estimated using techniques of environmental evaluation, but are subject to a wide margin of uncertainty. The costs of mitigation, principally by reducing the emissions of CO 2 , have been estimated using different kinds of economic models, some of the results of which have suggested that very little abatement of carbon emissions is justified before the costs of abatement exceed the benefits of it in terms of foregone damage and adaptation costs. The paper analyses the extent to which this conclusion is a function of the modelling assumptions and techniques used, rather than likely practical outcomes, with regard to the models' treatment of unemployed resources, revenue recycling, prior distortions in the economy due to the tax system and possible dynamic effects from the introduction of a carbon-energy tax. It concludes that, with different and arguably more appropriate treatment of the above issues, especially when the secondary benefits of reducing CO 2 emissions are also taken into account, it is not clear that even substantial reductions in the use of fossil fuels will incur net costs, especially if there is the prospect of even moderate costs from global warming. Copyright Kluwer Academic Publishers 1995

Suggested Citation

  • Paul Ekins, 1995. "Rethinking the costs related to global warming: A survey of the issues," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(3), pages 231-277, October.
  • Handle: RePEc:kap:enreec:v:6:y:1995:i:3:p:231-277
    DOI: 10.1007/BF00705981
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF00705981
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Barker, Terry, 1991. "Measuring economic costs of CO2 emission limits," Energy, Elsevier, vol. 16(3), pages 611-614.
    2. Nordhaus, William D, 1991. "To Slow or Not to Slow: The Economics of the Greenhouse Effect," Economic Journal, Royal Economic Society, vol. 101(407), pages 920-937, July.
    3. Jorgenson, Dale W. & Wilcoxen, Peter J., 1993. "Reducing US carbon emissions: an econometric general equilibrium assessment," Resource and Energy Economics, Elsevier, vol. 15(1), pages 7-25, March.
    4. Yamaji, Kenji & Matsuhashi, Ryuji & Nagata, Yutaka & Kaya, Yoichi, 1993. "A study on economic measures for CO2 reduction in Japan," Energy Policy, Elsevier, vol. 21(2), pages 123-132, February.
    5. Ingham, Alan & Ulph, Alistair, 1991. "Market-based instruments for reducing CO2 emissions : The case of UK manufacturing," Energy Policy, Elsevier, vol. 19(2), pages 138-148, March.
    6. Andrew Dean & Peter Hoeller, 1992. "Costs of Reducing CO2 Emissions: Evidence from Six Global Models," OECD Economics Department Working Papers 122, OECD Publishing.
    7. Manne, Alan S. & Richels, Richard G., 1991. "Buying greenhouse insurance," Energy Policy, Elsevier, vol. 19(6), pages 543-552.
    8. Scott, M.F., 1992. "A New View of Economic Growth," World Bank - Discussion Papers 131, World Bank.
    9. Cline, William R, 1991. "Scientific Basis for the Greenhouse Effect," Economic Journal, Royal Economic Society, vol. 101(407), pages 904-919, July.
    10. Dale W. Jorgenson, 1991. "Productivity and Economic Growth," NBER Chapters,in: Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth, pages 19-118 National Bureau of Economic Research, Inc.
    11. Hope, Chris & Anderson, John & Wenman, Paul, 1993. "Policy analysis of the greenhouse effect : An application of the PAGE model," Energy Policy, Elsevier, vol. 21(3), pages 327-338, March.
    12. Graciela Chichilnisky & Geoffrey Heal, 1993. "Global Environmental Risks," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 65-86, Fall.
    13. 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.
    14. Schelling, Thomas C, 1992. "Some Economics of Global Warming," American Economic Review, American Economic Association, vol. 82(1), pages 1-14, March.
    15. Glomsrod, Solveig & Vennemo, Haakon & Johnsen, Torgeir, 1992. " Stabilization of Emissions of CO2: A Computable General Equilibrium Assessment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(1), pages 53-69.
    16. Ulph, A. & Ulph, D., 1994. "Global warming: why irreversibility may not require lower current emissions of greenhouse gases," Discussion Paper Series In Economics And Econometrics 9402, Economics Division, School of Social Sciences, University of Southampton.
    17. Gaskins, Darius W, Jr & Weyant, John P, 1993. "Model Comparisons of the Costs of Reducing CO2 Emissions," American Economic Review, American Economic Association, vol. 83(2), pages 318-323, May.
    18. Jorgenson, Dale W. & Wilcoxen, Peter J., 1993. "Energy the environment, and economic growth," Handbook of Natural Resource and Energy Economics,in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 3, chapter 27, pages 1267-1349 Elsevier.
    19. Robert Ayres & Jörg Walter, 1991. "The greenhouse effect: Damages, costs and abatement," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 1(3), pages 237-270, September.
    20. Alan S. Manne & Richard G. Richels, 1990. "CO2 Emission Limits: An Economic Cost Analysis for the USA," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 51-74.
    21. Pearce, David W, 1991. "The Role of Carbon Taxes in Adjusting to Global Warming," Economic Journal, Royal Economic Society, vol. 101(407), pages 938-948, July.
    22. Dowlatabadi, Hadi & Morgan, M. Granger, 1993. "A model framework for integrated studies of the climate problem," Energy Policy, Elsevier, vol. 21(3), pages 209-221, March.
    23. Ulph, A. & Ulph, D., 1994. "Who gains from learning about global warming," Discussion Paper Series In Economics And Econometrics 9407, Economics Division, School of Social Sciences, University of Southampton.
    24. Nordhaus, William D., 1993. "Rolling the 'DICE': an optimal transition path for controlling greenhouse gases," Resource and Energy Economics, Elsevier, vol. 15(1), pages 27-50, March.
    25. John Whalley & Randall Wigle, 1991. "Cutting CO2 Emissions: The Effects of Alternative Policy Approaches," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 109-124.
    26. repec:fth:harver:1487 is not listed on IDEAS
    27. Ballard, Charles L & Shoven, John B & Whalley, John, 1985. "General Equilibrium Computations of the Marginal Welfare Costs of Taxes in the United States," American Economic Review, American Economic Association, vol. 75(1), pages 128-138, March.
    28. William W. Hogan, 1990. "Comments on Manne and Richels: "CO2 Emission Limits: An Economic Analysis for the USA"," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 75-86.
    29. William W. Hogan & Dale W. Jorgenson, 1991. "Productivity Trends and the Cost of Reducing CO2 Emissions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 67-86.
    30. Jean-Marc Burniaux & John P. Martin & Giuseppe Nicoletti & Joaquim Oliveira Martins, 1991. "The Costs of Policies to Reduce Global Emissions of CO2: Initial Simulation Results with GREEN," OECD Economics Department Working Papers 103, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. van den Bergh, J.C.J.M. & Botzen, W.J.W., 2015. "Monetary valuation of the social cost of CO2 emissions: A critical survey," Ecological Economics, Elsevier, vol. 114(C), pages 33-46.
    2. Olivier Godard, 1996. "Economic Expertise And Decision-Making In Controversial Universes," Post-Print halshs-00625518, HAL.
    3. Olivier Godard, 1998. "On markets and the conditions of a profitable use of economic instruments for environmental policy in countries in transition to market," Post-Print halshs-00624095, HAL.
    4. Haberl, Helmut & Adensam, Heidi & Geissler, Susanne, 1998. "Optimal climate protection strategies for space heating The case of Austria," Energy Policy, Elsevier, vol. 26(15), pages 1125-1135, December.
    5. Olivier Godard, 1997. "Social Decision-Making under Scientific Controversy, Expertise, and the Precautionary Principle," Post-Print halshs-00624027, HAL.
    6. Bueler, Benno, 1997. "Solving an equilibrium model for trade of CO2 emission permits," European Journal of Operational Research, Elsevier, vol. 102(2), pages 393-403, October.
    7. Samuel Fankhauser & Richard Tol & DAVID Pearce, 1997. "The Aggregation of Climate Change Damages: a Welfare Theoretic Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(3), pages 249-266, October.
    8. Azar, Christian & Sterner, Thomas, 1996. "Discounting and distributional considerations in the context of global warming," Ecological Economics, Elsevier, vol. 19(2), pages 169-184, November.
    9. Krause, Florentin, 1996. "The costs of mitigating carbon emissions : A review of methods and findings from European studies," Energy Policy, Elsevier, vol. 24(10-11), pages 899-915.
    10. Hans Asbjørn Aaheim & Kristin A. & Hans Seip, 1999. "Climate Change and Local Pollution Effects – An Integrated Approach," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 4(1), pages 61-81, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:6:y:1995:i:3:p:231-277. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.