15 Mar '12, 2am

What's wrong with climate change economics?

Last week economist William Nordhaus slammed global warming deniers and explained that the cost of delaying action is $4 Trillion. As I wrote, Nordhaus’s blunt piece — “Why the Global Warming Skeptics Are Wrong ” – is worth reading because, like most mainstream climate economists, he is no climate hawk. A key reason for that, I believe, is a chronic low-balling of future temperature rise and hence future climate impacts and hence future climate damages by the mainstream economic profession. Nordhaus’s piece proves that point. In his argument on why CO2 is a pollutant and negative externality—”a byproduct of economic activity that causes damages to innocent bystanders”– he writes: The question here is whether emissions of CO 2 and other greenhouse gases will cause net damages, now and in the future. This question has been studied extensively. The most recent thorough survey...

Full article: http://www.env-econ.net/2012/03/whats-wrong-with-climate-...

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