Endogenous growth, convexity of damage and climate risk: how Nordhaus’ framework supports deep cuts in carbon emissions

Dietz, Simon and Stern, Nicholas (2015) Endogenous growth, convexity of damage and climate risk: how Nordhaus’ framework supports deep cuts in carbon emissions. The Economic Journal, 125 (583). pp. 547-620. ISSN 1468-0297

Preview

PDF - Published Version Available under License Creative Commons Attribution Non-commercial. Download (2649Kb) | Preview

• LSE expert's profile
• LSE expert's profile

• Published item via DOI

Abstract

‘To slow or not to slow’ (Nordhaus, 1991) was the first economic appraisal of greenhouse gas emissions abatement and founded a large literature on a topic of worldwide importance. We offer our assessment of the original article and trace its legacy, in particular Nordhaus's later series of ‘DICE’ models. From this work, many have drawn the conclusion that an efficient global emissions abatement policy comprises modest and modestly increasing controls. We use DICE itself to provide an initial illustration that, if the analysis is extended to take more strongly into account three essential elements of the climate problem – the endogeneity of growth, the convexity of damage and climate risk – optimal policy comprises strong controls.

Item Type:	Article
Official URL:	http://onlinelibrary.wiley.com/journal/10.1111/(IS...
Additional Information:	© 2015 The Authors © CC BY-NC 4.0
Library of Congress subject classification:	G Geography. Anthropology. Recreation > GE Environmental Sciences
Journal of Economic Literature Classification System:	Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters
Sets:	Departments > Geography and Environment Research centres and groups > Grantham Research Institute on Climate Change and the Environment Research centres and groups > India Observatory Research centres and groups > Centre for Climate Change Economics and Policy (CCCEP) Research centres and groups > Asia Research Centre Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Funders:	Grantham Foundation for the Protection of the Environment , Economic and Social Research Council
Date Deposited:	29 Jul 2014 10:49
URL:	http://eprints.lse.ac.uk/58406/

Actions (login required)

Record administration - authorised staff only