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The issues of technology and uncertainty are very much at the heart
of the policy debate of how much to control greenhouse gas
emissions. The costs of doing so are present and high while the
benefits are very much in the future and, most importantly, they
are highly uncertain. Whilst there is broad consensus on the key
elements of climate change science and agreement that near-term
actions are needed to prevent dangerous anthropogenic interference
with the climate system, there is little agreement on the costs and
benefits of climate policy. The book looks at different ways of
reconciling the needs for sustainability and equity with the costs
of action now. Presenting a compendium of methodologies for
evaluating the economic impact of technological innovation upon
climate-change policy, this book describes mathematical models and
their predictions. The goal is to provide a practitioner's guide
for doing the science of economics and climate change. Because the
assumptions motivating different problems in the economics of
climate change have different complexities, a number of models are
presented with varying levels of difficulty: reduced-form and
structural, partial- and general-equilibrium, closed-form and
computational. A unifying theme of these models is the
incorporation of a number of price and quantity instruments and an
analysis of their respective efficacies. This book presents models
that contain structural uncertainty, i.e., uncertainty that
economic agents respond to via their risk attitudes. The novelty of
this book is to relate the effects of risk and risk attitudes to
environment-improving technological innovation.
The issues of technology and uncertainty are very much at the heart
of the policy debate of how much to control greenhouse gas
emissions. The costs of doing so are present and high while the
benefits are very much in the future and, most importantly, they
are highly uncertain. Whilst there is broad consensus on the key
elements of climate change science and agreement that near-term
actions are needed to prevent dangerous anthropogenic interference
with the climate system, there is little agreement on the costs and
benefits of climate policy. The book looks at different ways of
reconciling the needs for sustainability and equity with the costs
of action now. Presenting a compendium of methodologies for
evaluating the economic impact of technological innovation upon
climate-change policy, this book describes mathematical models and
their predictions. The goal is to provide a practitioner's guide
for doing the science of economics and climate change. Because the
assumptions motivating different problems in the economics of
climate change have different complexities, a number of models are
presented with varying levels of difficulty: reduced-form and
structural, partial- and general-equilibrium, closed-form and
computational. A unifying theme of these models is the
incorporation of a number of price and quantity instruments and an
analysis of their respective efficacies. This book presents models
that contain structural uncertainty, i.e., uncertainty that
economic agents respond to via their risk attitudes. The novelty of
this book is to relate the effects of risk and risk attitudes to
environment-improving technological innovation.
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