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What Value Do We Attach to Climate Action?

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  • Alain Quinet

Abstract

[eng] In the course of policy making to mitigate the effects of climate change, economists seek to attach a monetary value to actual or foregone carbon emissions. Charting a long term pathway for carbon prices involves measuring the most cost effective way to reduce emissions, assigning value to long term investment, and having a benchmark against which to set priorities. The carbon neutrality target, as set out in the 2015 Paris Agreement, calls for higher carbon values in monetary terms than those historically obtained under Factor 4 targets derived from a cost benefit approach. This paper looks at developments in carbon values over time, with an emphasis on their underlying methodologies and the role of uncertainty in valuation. It then sets out how carbon values can be used in policy making to mitigate the effects of climate change.

Suggested Citation

  • Alain Quinet, 2019. "What Value Do We Attach to Climate Action?," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 510-511-5, pages 165-179.
    • Handle: RePEc:nse:ecosta:ecostat_2019_510t_12
    DOI: https://doi.org/10.24187/ecostat.2019.510t.1995
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    2. Lucas Vivier & Louis-Gaëtan Giraudet, 2024. "Energy efficiency policy in an n-th best world: Assessing the implementation gap," CIRED Working Papers hal-04510798, HAL.

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    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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