The Economics of Climate Change

16 Pages Posted: 25 Jan 2006 Last revised: 30 Jan 2022

See all articles by Lawrence H. Goulder

Lawrence H. Goulder

Stanford University - Department of Economics; National Bureau of Economic Research (NBER); Resources for the Future

William A. Pizer

Duke University

Multiple version iconThere are 2 versions of this paper

Date Written: January 2006

Abstract

Global climate change poses a threat to the well-being of humans and other living things through impacts on ecosystem functioning, biodiversity, capital productivity, and human health. This paper briefly surveys recent research on the economics of climate change, including theoretical insights and empirical findings that offer guidance to policy makers. Section 1 frames the climate change problem and indicates the ways that economic research can address it. Section 2 describes approaches to measuring the benefits and costs associated with reducing greenhouse gas emissions. In Section 3 we discuss the implications of uncertainty for the timing and stringency of policies to address possible climate change. We then present issues related to policy design, including instrument choice (Section 4), flexibility (Section 5), and international coordination (Section 6). The final section offers general conclusions.

Suggested Citation

Goulder, Lawrence H. and Pizer, William A., The Economics of Climate Change (January 2006). NBER Working Paper No. w11923, Available at SSRN: https://ssrn.com/abstract=876026

Lawrence H. Goulder (Contact Author)

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William A. Pizer

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