Stabilizing the global climate: A simple and robust benefit-cost analysis

Quiggin, John (2012). Stabilizing the global climate: A simple and robust benefit-cost analysis. In: Proceedings. AAEA & NAREA Joint Annual Meeting (2011), Pittsburgh, PA, U.S.A., (291-300). 24-26 July 2011. doi:10.1093/ajae/aar130

Author Quiggin, John
Title of paper Stabilizing the global climate: A simple and robust benefit-cost analysis
Conference name AAEA & NAREA Joint Annual Meeting (2011)
Conference location Pittsburgh, PA, U.S.A.
Conference dates 24-26 July 2011
Proceedings title Proceedings   Check publisher's open access policy
Journal name American Journal of Agricultural Economics   Check publisher's open access policy
Place of Publication Cary, NC, U.S.A.
Publisher Oxford University Press
Publication Year 2012
Sub-type Fully published paper
DOI 10.1093/ajae/aar130
ISSN 0002-9092
Volume 94
Issue 2
Start page 291
End page 300
Total pages 10
Language eng
Formatted Abstract/Summary
In summary, there seems little doubt that given widespread implementation of a market mechanism yielding a carbon price in the range $US50–100, backed up by regulatory measures to promote energy efficiency, global CO2 emissions could be greatly reduced at a modest economic cost. The result would be to stabilize atmospheric concentration at or near the level of 450 ppm, which is, for median values of climate sensitivity, consistent with an ultimate warming of 2 degrees C. The net welfare gain from such an outcome, relative to BAU, would be substantial.

The main question facing the world is whether national governments can overcome both domestic opponents of action and the incentives to free-ride on the efforts of others. If, as Stern has said, climate change represents the greatest market failure in history, then an inadequate policy response will represent one of the greatest of government failures.
Keyword Stern
Q-Index Code EX
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Published under "General Sessions: Fellows Address". Journal note: "Presented at the 2011 AAEA annual meeting, Pittsburgh, PA. Invited addresses are not subjected to the journal’s standard refereeing process."

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