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Global Warming Economics in the Long Run: A Conceptual Framework

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  • John Gowdy
  • Roxana Juliá

Abstract

Economic models of climate change typically analyze its short-run effects, for example, up to the year 2100 or for a doubling of atmospheric CO2. This is a potentially serious shortcoming since under a business-as-usual scenario, atmospheric CO2 concentrations could more than quadruple. We introduce a framework that endogenously accounts for long-run climate change and examine the implications of alternative mitigation strategies: one in which the rates of annual emissions are reduced, and one that places absolute limits on the total amount of carbon released. We discuss alternative valuation frameworks, drawing on the debate surrounding the Stern Review.

Suggested Citation

  • John Gowdy & Roxana Juliá, 2010. "Global Warming Economics in the Long Run: A Conceptual Framework," Land Economics, University of Wisconsin Press, vol. 86(1), pages 117-130.
    • Handle: RePEc:uwp:landec:v:86:y:2010:i:1:p:117-130
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    References listed on IDEAS

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    1. John M. Gowdy, 2013. "Valuing nature for climate change policy: from discounting the future to truly social deliberation," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 25, pages 547-560, Edward Elgar Publishing.

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    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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