Managing the Global Commons: The Economics of Climate Change

Managing the Global Commons: The Economics of Climate Change

by William D. Nordhaus
     
 

ISBN-10: 0262140551

ISBN-13: 9780262140553

Pub. Date: 10/04/1994

Publisher: MIT Press

Coping with the challenges of global warming is a daunting task for both scientists and economists, who must understand future changes, and for policy makers, who must ultimately choose policies to balance risks and costs. Managing the Global Commons presents a unique effort to encompass economic, scientific, and policy aspects of this great geophysical

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Overview

Coping with the challenges of global warming is a daunting task for both scientists and economists, who must understand future changes, and for policy makers, who must ultimately choose policies to balance risks and costs. Managing the Global Commons presents a unique effort to encompass economic, scientific, and policy aspects of this great geophysical experiment.Managing the Global Commons provides a detailed analysis of the DICE model (Dynamic Integrated model of Climate and the Economy) as well as an extensive analysis of the model's results. DICE is the first dynamic model to include a closed-loop system that includes emissions,concentrations, climate change, damages, and emissions controls. The model is useful for estimating the costs and benefits of different paths for slowing climate change and for analyzing the impact of control strategies over time.The analysis contains a number of methodological advances and major findings - most importantly the construction of a small model to encompass the primary components of the climate and economic system within an optimization framework. Also included are new techniques and results concerning the role of uncertainty and the "risk premium" involved in policies to slow global warming. In addition, the analysis derives a set of uncertain representative scenarios that summarize the large number of potential outcomes into a manageable number to be used within an optimization framework and incorporated into a contingent-commodity framework.Nordhaus examines several different approaches to climate-change policy: no controls, economic optimization,geoengineering, stabilization of emissions and climate, and a ten-year delay in undertaking climate-change policies. Among these, there is a modest advantage of an efficient policy over no controls or a ten-year delay, while the three stabilization options would impose significant net costs. Overall, Nordhaus observes, the analysis reveals that even with major technological breakthroughs and stringent controls, the momentum of past greenhouse gas emissions coupled with great inertia in climate change policy will lead to an inevitable rendezvous with massive climate change.

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Product Details

ISBN-13:
9780262140553
Publisher:
MIT Press
Publication date:
10/04/1994
Edition description:
New Edition
Pages:
223
Product dimensions:
6.20(w) x 8.90(h) x 0.80(d)
Age Range:
18 Years

Table of Contents

Preface
IModeling the Economics of Climate Change
2The Structure and Derivation of the DICE Model7
3Macrogeophysics: Derivation of the Climate and Carbon-Cycle Equations23
4Geoeconomics: Energy, Emissions, and the Economic Impact of Climate Change49
IIModel Results
5Analysis of Policies to Slow Global Warming77
IIIRisk and Uncertainty in Policy toward Climate Change
6Sensitivity Analysis of the DICE Model101
7Formal Sensitivity Analysis: Estimation of Uncertainty in Climate Change137
8Decision Analysis and the Value of Information169
Appendix: Computer Program for the DICE Model191
References199
Index205

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