A new economic model of climate change?

Today, Simon Dietz and Nick Stern (D&S) of the LSE released a new working paper. They make a few simple changes to Bill Nordhaus’s DICE model. The most important are that they allow for a range of climate sensitivities, and the possibility that climate change could cause catastrophic damages if the Earth’s temperature were toContinue Reading and comment

Has the treasury omitted £300 million per year of extra climate impacts from its fuel duty reduction calculations?

Today the Treasury published its analysis of the dynamic effects of fuel duty reductions. The headline message of its analysis is that ‘these reductions in duty will increase GDP by between 0.3 and 0.5 per cent in the long-term’. Apart from a single short paragraph (section 3.25), the report does not mention pollution. It does not mentionContinue Reading and comment

Extreme Weather, Economics and the Arctic

Last Friday, the Guardian published a short piece by two colleagues and me in its EcoAudit ‘Why has British weather been so bad?’ Here is the complete piece that we sent to the Guardian, which includes a bit more about the scientific programme which is just starting to try to understand and better model theContinue Reading and comment

The extra climate impacts of melting permafrost

UNEP today published a short report on the Policy Implications of Warming Permafrost. Although it contains a few estimates of the possible economic impacts in arctic communities, amounting to $3 – 6 billion, it does not contain any estimates of the far greater likely impacts around the world from the addition of many Megatonnes (Mt) of greenhouse gasesContinue Reading and comment