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Revisiting the economics of climate change: the role of geoengineering

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  • Moreno-Cruz, Juan B.
  • Smulders, Sjak

Abstract

Technically simple measures to directly reduce mean global temperatures could be available in the near future. We introduce “geoengineering” into a simple analytical model of climate change. We model the technical and economic characteristics of geoengineering in line with the recent literature from physical and environmental management sciences. We investigate: (i) under which circumstances geoengineering can substitute, partly or completely, for traditional abatement strategies, (ii) under which conditions and at what level geoengineering is optimally employed, and (iii) whether geoengineering can mitigate free-riding problems.

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  • Moreno-Cruz, Juan B. & Smulders, Sjak, 2017. "Revisiting the economics of climate change: the role of geoengineering," Research in Economics, Elsevier, vol. 71(2), pages 212-224.
    • Handle: RePEc:eee:reecon:v:71:y:2017:i:2:p:212-224
    DOI: 10.1016/j.rie.2016.12.001
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    References listed on IDEAS

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    1. Aldy,Joseph E. & Stavins,Robert N. (ed.), 2007. "Architectures for Agreement," Cambridge Books, Cambridge University Press, number 9780521692175, November.
    2. J. Bickel & Shubham Agrawal, 2013. "Reexamining the economics of aerosol geoengineering," Climatic Change, Springer, vol. 119(3), pages 993-1006, August.
    3. Juan Moreno-Cruz & David Keith, 2013. "Climate policy under uncertainty: a case for solar geoengineering," Climatic Change, Springer, vol. 121(3), pages 431-444, December.
    4. Martin L. Weitzman, 2015. "A Voting Architecture for the Governance of Free-Driver Externalities, with Application to Geoengineering," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(4), pages 1049-1068, October.
    5. Aldy,Joseph E. & Stavins,Robert N. (ed.), 2007. "Architectures for Agreement," Cambridge Books, Cambridge University Press, number 9780521871631, November.
    6. Mingkui Cao & F. Ian Woodward, 1998. "Dynamic responses of terrestrial ecosystem carbon cycling to global climate change," Nature, Nature, vol. 393(6682), pages 249-252, May.
    7. Marlos Goes & Nancy Tuana & Klaus Keller, 2011. "The economics (or lack thereof) of aerosol geoengineering," Climatic Change, Springer, vol. 109(3), pages 719-744, December.
    8. David G. Victor, 2008. "On the regulation of geoengineering," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(2), pages 322-336, Summer.
    9. Scott Barrett, 2008. "The Incredible Economics of Geoengineering," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(1), pages 45-54, January.
    10. Heutel, Garth & Moreno-Cruz, Juan & Shayegh, Soheil, 2016. "Climate tipping points and solar geoengineering," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PB), pages 19-45.
    11. Moreno-Cruz, Juan B., 2015. "Mitigation and the geoengineering threat," Resource and Energy Economics, Elsevier, vol. 41(C), pages 248-263.
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    Cited by:

    1. Moreno-Cruz, Juan B. & Wagner, Gernot & Keith, David w., 2017. "An Economic Anatomy of Optimal Climate Policy," Working Paper Series rwp17-028, Harvard University, John F. Kennedy School of Government.
    2. Wei Jin & ZhongXiang Zhang, 2018. "Capital Accumulation, Green Paradox, and Stranded Assets: An Endogenous Growth Perspective," Working Papers 2018.33, Fondazione Eni Enrico Mattei.
    3. Fabien Prieur & Ingmar Schumacher & Martin Quaas, 2019. "Mitigation strategies under the threat of solar radiation management," Working Papers hal-04141891, HAL.
    4. Kahn, Matthew E. & Zhao, Daxuan, 2018. "The impact of climate change skepticism on adaptation in a market economy," Research in Economics, Elsevier, vol. 72(2), pages 251-262.
    5. Frederick Ploeg, 2018. "The safe carbon budget," Climatic Change, Springer, vol. 147(1), pages 47-59, March.
    6. Jin, Wei & Shi, Xunpeng & Zhang, Lin, 2021. "Energy transition without dirty capital stranding," Energy Economics, Elsevier, vol. 102(C).
    7. Olivier STERCK, 2011. "Geoengineering as an alternative to mitigation: specification and dynamic implications," LIDAM Discussion Papers IRES 2011035, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    8. Finus, Michael & Furini, Francesco, 2023. "Global climate governance in the light of geoengineering: A shot in the dark?," Journal of Environmental Economics and Management, Elsevier, vol. 122(C).
    9. Johannes Emmerling & Massimo Tavoni, 2017. "Quantifying Non-cooperative Climate Engineering," Working Papers 2017.58, Fondazione Eni Enrico Mattei.
    10. Baran Doda, 2014. "Why is geoengineering so tempting?," GRI Working Papers 170, Grantham Research Institute on Climate Change and the Environment.
    11. Manoussi, Vassiliki & Xepapadeas, Anastasios & Emmerling, Johannes, 2018. "Climate engineering under deep uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 94(C), pages 207-224.
    12. Piergiuseppe Pezzoli & Johannes Emmerling & Massimo Tavoni, 2023. "SRM on the table: the role of geoengineering for the stability and effectiveness of climate coalitions," Climatic Change, Springer, vol. 176(10), pages 1-21, October.
    13. Klepper, Gernot & Dovern, Jonas & Rickels, Wilfried & Barben, Daniel & Goeschl, Timo & Harnisch, Sebastian & Heyen, Daniel & Janich, Nina & Maas, Achim & Matzner, Nils & Scheffran, Jürgen & Uther, Ste, 2016. "Herausforderung Climate Engineering: Bewertung neuer Optionen für den Klimaschutz," Kieler Beiträge zur Wirtschaftspolitik 8, Kiel Institute for the World Economy (IfW Kiel).

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