1
The Challenge of Global Warming:Economic Models and Environmental Policy
William NordhausSterling Professor of EconomicsYale UniversityNew Haven, Connecticut USA July 24, 2007© William Nordhaus, 2007
2 Simplicity is the highest form of sophistication.-- Leonardo
3
Table of Contents
Introduction and Acknowledgments..........................................................................5
A.
Preface.................................................................................................................5
B.
Reader’s Guide to the Book.............................................................................6
C.
Acknowledgements..........................................................................................8
I. Summary for the Concerned Citizen......................................................................10
II. Background and Description of the DICE Model...............................................36
A. General Background on Global Warming.......................................................36
B. Economic Sectors in the DICE-2007 model......................................................38
C. Geophysical sectors.............................................................................................41
III. Derivation of the Equations of DICE-2007 Model.............................................44
A. Objective function...............................................................................................44
B. Economic variables..............................................................................................46
C. Geophysical equations........................................................................................49
D. Computational considerations..........................................................................51
E. Revisions since DICE-1999.................................................................................52
F. Major Contentious Issues....................................................................................59
A. Summary...............................................................................................................66
B. Detailed Description of Alternative Policies....................................................66
V. Results of the DICE-2007 Model Runs.................................................................81
A. Overall results......................................................................................................81
B. Emissions controls, the social cost of carbon, and carbon prices..................87
C. Emissions, concentrations, and climate change..............................................89
D. Other economic variables...................................................................................92
E. Why Have the Estimated Optimal Carbon Taxes Increased Since 1999?....93
VI. The Economics of Participation............................................................................96
A. Analytical background.......................................................................................96
B. Applications..........................................................................................................99
VII. Dealing with Uncertainty in Climate-Change Policy....................................103
A.
General Background on Uncertainty.........................................................103
B.
Technical Background for the Estimates...................................................105
C.
Importance of Different Uncertainties.......................................................108
D.
Applications...................................................................................................109
E.
Should High Climate-Change Outcomes Have a Risk Premium?........111
F.
Abrupt and Catastrophic Climate Change...............................................116
VIII. The Many Advantages of Carbon Taxes........................................................121
A. Prices versus Quantities for Global Public Goods........................................121
B. Comparison of Price and Quantity Approaches...........................................124
Search History:
Result 00 of 00
00 results for result for
p.
F. Major Contentious Issues for The Challenge of Global Warming: Economic Models and Environmental Policy
The Challenge of Global Warming:
Economic Models and Environmental Policy
William Nordhaus
Sterling Professor of Economics
Yale University
New Haven, Connecticut USA
July 24, 2007
© William Nordhaus, 2007
Economic Models and Environmental Policy
William Nordhaus
Sterling Professor of Economics
Yale University
New Haven, Connecticut USA
July 24, 2007
© William Nordhaus, 2007
2.8K
Reads
24
Readcasts
1
Embed Views
Get Scribd Mobile
To get Scribd mobile enter your number and we'll send you a link to the Scribd app for iPhone & Android.We've sent a link to the Scribd app. If you didn't receive it, try again.
We'll never share your phone number.
Notes
Load more
