Stabilizing the Global Climate: A Simple and Robust Benefit-Cost Analysis
Most models of optimal climate change policy are complex and opaque. In this paper, it is argued that the convexity of climate damage and mitigation cost function provides a basis for the derivation of simple and robust estimates of optimal stabilization targets and carbon prices. For all but a few extreme assumptions, the optimal carbon price is between $40 and $75. Similarly, for a wide range of parameter values the optimal target is between 425 ppm and 475 ppm. In all simulations, the total cost of mitigation is below 5 per cent of income, and in most cases substantially below.
(This abstract was borrowed from another version of this item.)
Volume (Year): 94 (2012)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org/
More information through EDIRC
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.:
- John Quiggin, 2008.
"Equity between overlapping generations,"
Climate Change Working Papers
WPC08_1, Risk and Sustainable Management Group, University of Queensland, revised Jun 2008.
- Quiggin, John, 2008. "Equity between overlapping generations," Risk and Sustainable Management Group Working Papers 152091, University of Queensland, School of Economics.
- Martin L. Weitzman, 2007. "A Review of the Stern Review on the Economics of Climate Change," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 703-724, September.
- William D. Nordhaus, 2007. "A Review of the Stern Review on the Economics of Climate Change," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 686-702, September.
When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:94:y:2012:i:2:p:291-300. 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: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.