Article 2 of the UN Framework Convention on Climate Change calls for stabilization of the atmospheric concentration of CO2. #climateeconomics
Part of CO2 emissions stay in the atmosphere forever -- or rather, is removed at the rate at which rocks grow. #climateeconomics
Thus, stabilization of the atmospheric concentration of CO2 implies that CO2 emissions have to go to zero. #climateeconomics
Two degrees is an arbitrary target, set by 11 German professors, adopted internationally for want of an alternative. #climateeconomics
In the social optimum, the marginal net present costs of a policy equal its marginal net present benefits. #climateeconomics
The marginal costs of complete emission reduction are high. Eliminating all emissions is very difficult. #climateeconomics
The incremental benefits of complete emission reduction are small. A little bit of climate change does damage. #climateeconomics
It cannot be optimal to reduce greenhouse gas emissions to zero, so it cannot be optimal to stabilize CO2 concentrations. #climateeconomics
Estimates of the abatement costs and benefits point to an optimal emission reduction effort that is modest. #climateeconomics
Whereas all credible studies agree that emission reduction should start slow and stop short of 100% in the long-term ... #climateeconomics
... the magnitude of the modest effort in the medium term is very sensitive to a large number of assumptions. #climateeconomics
100% emission reduction is justified if there is a perfect and permanent substitute for fossil fuels at a reasonable price. #climateeconomics
Secondary benefits are a good reason to cut other pollutants but not carbon dioxide. #climateeconomics
The relative prices of greenhouse gases should equal their relative social costs of carbon or their relative shadow prices. #climateeconomics
The global warming potential is a poor approximation of the relative social cost of carbon, incorrectly applied in a constrained optimization. #climateeconomics
Chapter 8 of #climateeconomics amazon.co.uk/Climate-Econom…
Slides and more sites.google.com/site/climateco…
Test your knowledge surveygizmo.com/s3/3262324/Qui…
Further reading biblio.repec.org/entry/tdf.html
