Endogenous growth, convexity of damages and climate risk

editor score
Editor Score:
75
editor score
Quality:
80
editor score
Usability:
75
editor score
Reliability:
85
Asset Type
License
Free
Expiration
Monday, June 17, 2024
Publication year
2014
Energy Trend 2014
Carbon
Industry
Energy/Utility
Energy Sub-sector
All

Analysis of Nordhaus' work, a modeling framework that set several industry standard components for carbon tax analysis. From this work many have drawn the conclusion that an efficient global emissions abatement policy comprises modest and modestly increasing controls. On the contrary, this report provides an initial illustration that, if the analysis is extended to take more strongly into account three essential elements of the climate problem – the endogeneity of growth, the convexity of damages, and climate risk – optimal policy comprises strong controls.

Yegii expert:
Author:
Simon Dietz and Nicholas Stern
Publisher:
The Centre for Climate Change Economics and Policy, The Grantham Research Institute on Climate Change and the Environment
Time horizon:
Decade(s)
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