Are optimal CO2 emissions really optimal? Four critical issues for economists in the greenhouse

Environmental and Resource Economics

Volumn 11, Issue 3-4, 1998, Pages 301-315

  Azar, Christian ^a  

^a CHALMERS UNIVERSITY OF TECHNOLOGY   (Sweden)

Author keywords

Climate change; Cost benefit analysis; Decision criterion; Discount rate; Weight factors

Indexed keywords

CARBON DIOXIDE; COST ACCOUNTING; COST EFFECTIVENESS; DECISION THEORY; GAS EMISSIONS; GREENHOUSE EFFECT; INDUSTRIAL ECONOMICS; PUBLIC POLICY;

COST EVALUATION; DECISION CRITERIA; GREENHOUSE GASES (GHG);

AIR POLLUTION CONTROL;

EMISSION CONTROL; ENVIRONMENTAL ECONOMICS; GLOBAL WARMING; GREENHOUSE GAS;

EID: 0032052622     PISSN: 09246460     EISSN: None     Source Type: Journal    
DOI: 10.1023/a:1008235326513     Document Type: Conference Paper

References (62)

1. Arrow, K. J., W. Cline, K. G. Mäler, M. Munasinghe, R. Squitieri and J. Stiglitz (1996), 'Intertemporal Equity, Discounting and Economic Efficiency', in J. P. Bruce, H. Lee and E. F. Haites, eds., Climate Change 1995: Economic and Social Dimensions of Climate Change, Second Assessment of the Intergovernmental Panel on Climate Change. Cambridge, UK: Cambridge University Press.
2. Ayres R. U. and J. Walter (1991), 'The Greenhouse Effect: Damages, Costs and Abatement', Environmental and Resource Economics 1, 237-270.
3. Ayres, R. U and R. Axtell (1996), 'Foresight as a Survival Characteristic: When if Ever Does the Long View Pay', Technological Forecasting and Social Change 51, 209-235.
4. Azar, C. and T. Sterner (1996), 'Discounting and Distributional Considerations in the Context of Climate Change', Ecological Economics 19, 169-185.
5. 2', Science 276, 1818-1819.
6. Azar, C. (1998), 'Weight Factors in Cost-benefit Analysis of Climate change', Environmental and Resource Economics (in press).
7. Azar, C. and O. Johansson (1996), 'Uncertainty and Climate Change or the Economics of Twin Peaks', paper presented at the annual conference of European Environmental and Resource Economists, Lisbon, June 1996.
8. Bingham, G., R. Bishop, M. Brody, D. Bromley, E. Clark, W. Cooper, R. Costanza, T. Hale, G. Hayden, S. Kellert, R. Norgaard, B. Norton, J. Payne, C. Russel and G. Suter (1995), 'Issues in Ecosystem Valuation: Improving Information for Decision-Making', Ecological Economics 14, 73-90.
9. Birdsall, N. and A. Steer (1993), 'Act Now on Global Warming: But Don't Cook the Books', Finance and Development 30, 6-8.
10. Broome J. (1992), Counting the Cost of Global Change. Cambridge, UK: The White Horse Press.
11. Cline W. R. (1992). The Economics of Global Warming. Washington DC: Institute of International Economics.
12. d'Arge, R. C., W D. Schulze and D. S. Brookshire (1982), 'Carbon Dioxide and Intergenerational Choice', American Economic Review (papers and proceedings) 72(2), 251-256.
13. Ekins, P. (1995), 'Rethinking the Costs Related to Global Warming', Environmental and Resource Economics 6, 231-277.
14. Eriksson, K. E. (1994), 'On Discount, Temporal Justice, Sustainability and Limited Foresight', Richerche Economiche 48, 341-355.
15. Fankhauser, S. (1995), Valuing Climate Change: The Economics of the Greenhouse. London: Earthscan.
16. Gjerde, J., S. Grepperud and S. Kverndokk (1997), 'Optimal Climate Policy under the Possibility of a Catastrophe', paper presented at the Annual meeting of the European Association of Energy and Resource Economists (EAERE), Tilburg, Holland, June 1997.
17. 2 Mitigation, proceedings of a workshop held at IIASA, September 1992, Laxenburg, Austria, pp. 153-166.
18. 2-emission Abatement', Nature 390, 270-273.
19. 2 Emission Paths Using a Dimplified Structural Integrated Assessment Model', Climatic Change 37, 345-386.
20. Harrod, R. (1948), Towards a Dynamic Economics. London: St. Martin's Press.
21. Howarth, R. B. (1997), 'Discount Rates and Overlapping Generations: An Application to Climate Change', Contemporary Economic Policy, in press.
22. Jacobs, M. (1991), The Green Economy. London, UK: Pluto Press.
23. Johansson-Stenman, O. (1998), 'The Importance of Ethics in Environmental Economics with a Focus on Existence Values', Environmental and Resource Economics 11, in this issue.
24. Krause, F., W. Bach and J. Kooney (1992), Energy Policy in the Greenhouse. London: Earthscan.
25. Khanna, N. and D. Chapman (1996), 'Time Preference, Abatement Costs, and International Climate Policy: An Appraisal of IPCC 1995', Contemporary Economic Policy XIV, 56-65.
26. Layard, P. R. G and A. A. Walters (1978), Microeconomic Theory. UK: McGraw Hill.
27. Lind, R. C. et al. (eds.) (1982), Discounting for Time and Risk in Energy Policy. Baltimore: John Hopkins University Press.
28. Lind, R. C. (1995), 'Intergenerational Equity, Discounting, and the Role of Cost-Benefit Analysis in Evaluating Global Climate Policy', Energy Policy 23, 379-390.
29. Mahlman, J. D. (1997), 'Uncertainties in Projections of Human-caused Climate Warming', Science 278, 1416-1417.
30. Manne, A. S. (1995), 'The Rate of Time Preference. Implications for the Greenhouse Debate', Energy Policy 23, 391-394.
31. Manne, A. S., R. Mendelsohn and R. G. Richels (1995), 'MERGE. A Model for Evaluating Regional and Global Effects of GHG Reduction Policies', Energy Policy 23, 17-34.
32. Manne, A. S. (1996), 'Hedging Strategies for Global Carbon Dioxide Abatement: A Summary of Poll Results EMF 14 Subgroup - Analysis for Decision Making under Uncertainty', in N. Nakicenovic et al., eds., Climate Change: Integrating Science, Economic and Policy, proceedings of a workshop held at IIASA, Laxenburg, Austria, June 19-20 March, pp. 207-228.
33. Manne, A. S. (1997), 'Intergenerational Altruism, Discounting and the Greenhouse Debate', Draft. Stanford University, Ca.
34. Markandya, A. and D. W. Pearce (1989), 'Development, the Environment and the Social Rate of Discount', The World Bank Research Observer 6, 137-152.
35. Mendelsohn, R. and J. Neumann (eds.) (1998), 'The Economic Impacts of Climate Change on the US Economy', Cambridge, UK: Cambridge University Press. In press.
36. Nordhaus W. D. (1991), 'To Slow or Not to Slow: the Economics of the Greenhouse Effect', Economic Journal 101, 920-937.
37. Nordhaus, W. D. (1994), Managing the Global Commons: the Economics of Climate Change. Cambridge, MA: MIT Press.
38. Parry, I. W. H. (1993), 'Some Estimates of the Insurance Value against Climate Change from Reducing Greenhouse Gas Emissions', Resource and Energy Economics 15, 99-106.
39. Pearce, D. W., W. R. Cline, A. N. Achanta, S. Fankhauser, R. K. Pachauri, R. S. J. Tol and P. Vellinga (1996), 'The Social Costs of Climate Change: Greenhouse Damage and the Benefit of Control', in J. P. Bruce, H. Lee and E. F. Haites, eds., Climate Change 1995: Economic and Social Dimensions of Climate Change, Second Assessment of the Intergovernmental Panel on Climate Change. Cambridge, UK: Cambridge University Press.
40. Peck, S. C. and T. J. Teisberg (1993), 'Global Warming Uncertainties and the Value of Information: An Analysis Using CETA', Resource and Energy Economics 15, 71-97.
41. Price, C. (1993). Time Discounting and Value. Oxford, UK: Blackwell.
42. Rabl, A. (1996), 'Discounting of Long Term Costs. What Would Future Generations Want Us to Do?' Ecological Economics 17, 137-145.
43. Ramsey, F. P. (1928), 'A Mathematical Theory of Saving', The Economic Journal 138, 543-549.
44. Rawls, J. (1972), A Theory of Justice. Oxford: Oxford University Press.
45. Read, P. (1994), Responding to Global Warming. Zed Book Press.
46. Rijsberman, F. R. and R. J. Swart, eds. (1990), Targets and Indicators of Climatic Change. Sweden: Stockholm Environment Institute.
47. Rougharden, T. and S. H. Schneider (1998), 'Quantifying Uncertainties for Damage from Climate Change', submitted.
48. Schelling, T. C. (1995), 'Intergenerational Discounting', Energy Policy 23, 395-402.
49. 2 Emissions', Energy Policy 25, 491-500.
50. Schneider, S. H. (1997). 'Integrated Assessment Modelling of Global Climate Change: Transparent Rational Tool for Policy Making or Opaque Screen Hiding Value-laden Assumptions', Environmental Modelling and Assessment 2, 229-248.
51. Sen, A. K. (1987), On Ethics and Economics. Cambridge, MA: Blackwell.
52. Sidgwick, H. (1907), The Methods of Ethics. London: Macmillan.
53. Solow, R. (1992), An Almost Practical Step Towards Sustainability, An invited lecture on the occasion of the fortieth anniversary of resources for the future, Washington, 8 October.
54. 2 and Beyond: Benefits, Costs and Compensation', Ecological Economics 10, 27-36.
55. Spash, C. L. and R. C. d'Arge (1989), 'The Greenhouse Effect and Intergenerational Transfers', Energy Policy 17, 88-96.
56. Sterner, T. (1994), 'Discounting in a World of Limited Growth', Environmental and Resource Economics 4, 527-534.
57. Titus, J. G. (1992), 'The Costs of Climate Change to the United States', in S. K. Majmudar, L. S. Kalkstein, B. Yarnal and E. W. Miller, eds., Global Climate Change: Implications Challenges and Mitigation Measures. Easton, PA: The Pensylvania Academy of Science, pp. 384-409.
58. Tol, R. S. J. (1995), 'The Damage Cost of Climate Change Toward More Comprehensive Calculations', Environmental and Resource Economics 5, 353-374.
59. Tol, R. S. J. (1996), 'The Damage Costs of Climate Change. Towards a Dynamic Represenation', Ecological Economics 19, 67-90.
60. Toman, M. (1998), 'Research Frontiers in the Economics of Climate Change', Environmental and Resource Economics 11, in this issue.
61. 2 Concentrations', Nature 379, 240-243.
62. Wallace, L. (1993), 'Discounting Our Descendants', Finance and Development 30, 2.