Includes an evaluation of William Nordhaus’ DICE model, the best-known of the conventional cost-benefit analyses of climate change; a comparison with the economic analysis of the British Stern Review; and suggestions for how to construct a better approach to climate economics.
Ackerman explains the importance of discount rates, the need to consider the possibility of catastrophic scenarios, and the role of new, lower-carbon technologies in economic development, which could help offset climate mitigation costs.
