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Climate Engineering Economics

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Listed:
  • Garth Heutel
  • Juan Moreno-Cruz
  • Katharine Ricke

Abstract

This article reviews and evaluates the nascent literature on the economics of climate engineering. The literature distinguishes between two broad types of climate engineering: solar radiation management and carbon dioxide removal. We review the science and engineering characteristics of these technologies and analyze the implications of those characteristics on economic policy design. We discuss optimal policy and carbon price, inter-regional and inter-generational equity issues, strategic interaction in the design of international environmental agreements, and the sources of risk and uncertainty surrounding these technologies. Along with mitigation and adaptation, climate engineering technologies can be incorporated into future domestic and global climate policy design. More research on the topic is needed.

Suggested Citation

  • Garth Heutel & Juan Moreno-Cruz & Katharine Ricke, 2015. "Climate Engineering Economics," NBER Working Papers 21711, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:21711
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    References listed on IDEAS

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    1. Emmerling, Johannes & Tavoni, Massimo, 2013. "Geoengineering and Abatement: A “flat” Relationship under Uncertainty," Climate Change and Sustainable Development 148917, Fondazione Eni Enrico Mattei (FEEM).
    2. Ricke, Katharine L & Cole, Jason N S & Curry, Charles L & Irvine, Peter J & Ji, Duoying & Kravitz, Ben & MacMartin, Douglas G & Robock, Alan & Rasch, Philip J & Keith, David & Egill Kristjánsson, Jó, 2014. "A multi-model assessment of regional climate disparities caused by solar geoengineering," Scholarly Articles 23936192, Harvard Kennedy School of Government.
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    6. 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.
    7. 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.
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    Cited by:

    1. Campiglio, Emanuele & Dietz, Simon & Venmans, Frank, 2022. "Optimal climate policy as if the transition matters," LSE Research Online Documents on Economics 117610, London School of Economics and Political Science, LSE Library.
    2. Todd Sandler, 2018. "Collective action and geoengineering," The Review of International Organizations, Springer, vol. 13(1), pages 105-125, March.
    3. Bento, Antonio M. & Miller, Noah & Mookerjee, Mehreen & Severnini, Edson R., 2020. "A Unifying Approach to Measuring Climate Change Impacts and Adaptation," IZA Discussion Papers 13290, Institute of Labor Economics (IZA).
    4. Heutel, Garth & Moreno-Cruz, Juan & Shayegh, Soheil, 2018. "Solar geoengineering, uncertainty, and the price of carbon," Journal of Environmental Economics and Management, Elsevier, vol. 87(C), pages 24-41.
    5. Waxman, Andrew R. & Corcoran, Sean & Robison, Andrew & Leibowicz, Benjamin D. & Olmstead, Sheila, 2021. "Leveraging scale economies and policy incentives: Carbon capture, utilization & storage in Gulf clusters," Energy Policy, Elsevier, vol. 156(C).
    6. Heyen, Daniel & Tavoni, Alessandro, 2024. "Strategic dimensions of solar geoengineering: economic theory and experiments," LSE Research Online Documents on Economics 124448, London School of Economics and Political Science, LSE Library.
    7. Benjamin K. Sovacool & Chad M. Baum & Sean Low, 2022. "Determining our climate policy future: expert opinions about negative emissions and solar radiation management pathways," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(8), pages 1-50, December.

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    JEL classification:

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

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