A cost benefit analysis of slowing climate change

  • David Maddison
Part of the Studies in Regulation book series (STUDREG)


There are many conflicting views regarding the true dimensions of the climate change problem. Often these viewpoints are based on different estimates of key parameters. With little indication as to why parameter estimates vary so much and which ones might be the more reliable the prospects for a co-ordinated strategy to tackle climate change appear dim. Little consensus has emerged, for example, regarding the costs of abating carbon emissions. Some take the view that considerable improvements in energy efficiency are available at negative cost by setting minimum efficiency standards for vehicles and domestic appliances (e.g. Mills et al., 1991). Others regard the macroeconomic costs of even small reductions in carbon emissions as substantial (Manne and Richels, 1993). In the judgement of other researchers, a proportion of carbon emissions arise purely as a result of institutional failings; either at a regional level in the subsidies paid to fossil fuel energy producers in the erroneous belief that this promotes economic growth (Shah and Larsen, 1994), in failure to deal with air pollution (Glomsrod et al., 1992) and vehicle congestion in urban areas (Hughes, 1994), or at a global level in failing to make appropriate transfers to those countries whose forests contain rich biodiversity which we would wish to preserve (Pearce, 1991).


Carbon Emission Cost Benefit Analysis Abatement Cost Climate Change Problem Abatement Cost Function 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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© The Regulatory Policy Institute 1996

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  • David Maddison

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