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Cost-benefit analysis and the greenhouse effect

Author

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  • Spash, Clive L.
  • Hanley, Nick

Abstract

This paper looks at the growing concern over Greenhouse Gas emissions and the resulting human induced climate change. The background to a cost-benefit approach is sketched in terms of the scientific understanding and expected impacts. Then the theory behind a cost-benefit approach is explained and some of the studies and their results are critically presented. In the final section the concern for future generations is raised and a cost-benefit approach is shown to violate a right of the innocent to be free from harm. The conclusion is that economics cannot calculate the damages and the cost-benefit approach cannot therefore answer the question of how much to reduce Greenhouse Gases. Instead a range of no regrets policy actions are recommended along with changing how the deliberate creation of future harm of the innocent is treated both in economics and public policy. This is a paper from the Ecological Economics discussion paper series edited by Clive L. Spash and run from Stirling University from 1994 to 1996. This particular paper was published as: Cost-Benefit Analysis of the Greenhouse Effect. In Nick Hanley and Clive L. Spash (1993) Cost-Benefit Analysis and the Environment. Aldershot, England, Edward Elgar Chapter 13.

Suggested Citation

  • Spash, Clive L. & Hanley, Nick, 1994. "Cost-benefit analysis and the greenhouse effect," MPRA Paper 38666, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:38666
    as

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    File URL: https://mpra.ub.uni-muenchen.de/38666/1/MPRA_paper_38666.pdf
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    References listed on IDEAS

    as
    1. 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.
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    4. Daily, Gretchen C. & Ehrlich, Paul R. & Mooney, Harold A. & Ehrlich, Anne H., 1991. "Greenhouse economics: learn before you leap," Ecological Economics, Elsevier, vol. 4(1), pages 1-10, October.
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    Cited by:

    1. Spash, Clive L. & Young, A., 1994. "Sources Of Energy And The Environment," Discussion Papers in Ecological Economics 140535, University of Stirling, Department of Economics.

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    More about this item

    Keywords

    climate change; greenhouse gas control; cost-benefit analysis; intergenerational ethics;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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