The social cost of carbon - or marginal damage caused by an additional ton of carbon dioxide emissions - has been estimated by a U.S. government working group at $21 in 2010. That calculation, however, omits many of the biggest risks associated with climate change, and downplays the impact of...

This paper describes a new model, Climate and Regional Economics of Development (CRED), which is designed to analyze the economics of climate and development choices. Its principal innovations are the treatment of global equity, calculation of the optimum interregional flows of resources, and...

Dasgupta and Weitzman have shown that the saving rates implied by the Stern Review’s values for the rate of pure time preference and the elasticity of the marginal utility of consumption are too high from either a normative (Dasgupta) or descriptive (Weitzman) perspective. Given the attention...

* The current version of this paper was prepared with the support of the Australian Department of Climate Change and the Environmental Economics Research Hub at the Australian National University. Earlier versions were submitted to the London School of Economics and Political Science in partial...

Cost-Effectiveness Analysis (CEA) determines climate policies that reach a given climate target at minimum welfare losses. However, when applied to temperature targets under climate sensitivity uncertainty, decision-makers might be confronted with normatively unappealing negative expected values...

Anthropogenic climate change is likely to significantly increase human exposure to droughts and floods. It will also alter seasonal patterns of water availability and affect water quality and the health of aquatic ecosystems with various implications for social and economic wellbeing. Policy...