Dietz, Simon 
ORCID: 0000-0001-5002-018X 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).
574 - 620.
ISSN 0013-0133
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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. Nordhaus, W.D. (1991). ‘To slow or not to slow: the economics of the greenhouse effect’, Economic Journal, vol. 101(407), pp. 920–37.
| Item Type: | Article |
|---|---|
| Official URL: | https://academic.oup.com/ej |
| Additional Information: | © 2015 The Authors |
| Divisions: | Geography & Environment Grantham Research Institute India Observatory Climate Change Economics and Policy Asia Centre STICERD |
| Subjects: | G Geography. Anthropology. Recreation > GE Environmental Sciences |
| JEL classification: | Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters |
| Date Deposited: | 29 Jul 2014 10:49 |
| Last Modified: | 24 Apr 2024 17:54 |
| Funders: | Grantham Foundation for the Protection of the Environment, Economic and Social Research Council |
| URI: | http://eprints.lse.ac.uk/id/eprint/58406 |
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