Spash, Clive L. and Hanley, Nick (1994): Cost-benefit analysis and the greenhouse effect. Published in: (1993): pp. 238-260.
Download (2MB) | Preview
This paper looks at the growing concern over Greenhouse Gas emissions and the resulting human induced climate change. The background to a cost-benefit approach is sketched in terms of the scientific understanding and expected impacts. Then the theory behind a cost-benefit approach is explained and some of the studies and their results are critically presented. In the final section the concern for future generations is raised and a cost-benefit approach is shown to violate a right of the innocent to be free from harm. The conclusion is that economics cannot calculate the damages and the cost-benefit approach cannot therefore answer the question of how much to reduce Greenhouse Gases. Instead a range of no regrets policy actions are recommended along with changing how the deliberate creation of future harm of the innocent is treated both in economics and public policy.
This is a paper from the Ecological Economics discussion paper series edited by Clive L. Spash and run from Stirling University from 1994 to 1996. This particular paper was published as: Cost-Benefit Analysis of the Greenhouse Effect. In Nick Hanley and Clive L. Spash (1993) Cost-Benefit Analysis and the Environment. Aldershot, England, Edward Elgar Chapter 13.
|Item Type:||MPRA Paper|
|Original Title:||Cost-benefit analysis and the greenhouse effect|
|Keywords:||climate change; greenhouse gas control; cost-benefit analysis; intergenerational ethics|
|Subjects:||D - Microeconomics > D9 - Intertemporal Choice
D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency ; Cost-Benefit Analysis
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate ; Natural Disasters and Their Management ; Global Warming
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy
|Depositing User:||Clive L. Spash|
|Date Deposited:||08 May 2012 12:45|
|Last Modified:||15 Nov 2016 15:37|
Abrahamson P H (editor) (1989) The Challenge of Global Warming Washington, D.C.: Island Press.
Adams J A S, Mantovani M S M and Lundell L L (1977) "Wood versus fossil fuel as a source of excess carbon dioxide in the atmosphere: a preliminary report" Science 196 (4291): 54-56.
Adams R M (1989) "Global climate change and agriculture: An economic perspective" American Journal of Agricultural Economics 71 (5): 1272-1279.
Ayres R U and Walter J (1991) "The greenhouse effect: Damages, costs and abatement" Environmental and Resource Economics 1 (3): 237-270.
Barry B (1983) "Intergenerational justice in energy policy" in D Maclean and P G Brown (editors) Energy and the Future Totowa, NJ: Rowan and Allanheld.
Batie S S and Shugart H H (1989) "The biological consequences of climate changes: An ecological and economic assessment" in N J Rosenberg, W E Easterling, P R Crosson and J Darmstadter (editors) Greenhouse Warming: Abatement and Adaptation Washington, DC: Resources for the Future.
Bergman L (1991) "General equilibrium effects of environmental policy: a CGE-modelling approach" Environmental and Resource Economics 1 (1): 43-62.
Bloc K, Hendriks C and Turkenberg W (1989) "The role of carbon dioxide removal in the reduction of the greenhouse effect" in IEA Energy Technologies for Reducing Emissions of Greenhouse Gases Paris, International Energy Authority.
Broadus J M, Milliman J D, Edwards S F, Aubrey D G and Gable F (1986) "Rising sea level and damming of rivers: Possible effects in Egypt and Bangladesh" in J G Titus (editor) Effects of Changes in Stratospheric Ozone and Global Climate, IV. US Environmental Protection Agency.
Bromley D W (1991) "Entitlements, missing markets, and environmental uncertainty: Reply" Journal of Environmental Economics and Management 20 (3): 297-302.
Calendar G S (1938) "The artificial production of carbon dioxide" Quarterly Journal of the Royal Meterological Society 64: 223-240.
Ciborowski P (1989) "Sources, sinks, trends and opportunities" in D E Abrahamson (editor) The Challenge of Global Warming Washington, DC: Island Press.
Cline W R (1991) "Scientific basis for the greenhouse effect" Economic Journal 101 July: 904-919.
Cline W R (1992) The Economics of Global Warming. Harlow, Essex: Longman.
Conrad K and Schroder M (1991) "The control of CO2 emissions and its economic impact: An AGE model for a German state" Environmental and Resource Economics 1 (3): 289-312.
Crosson P R (1989) "Climate change: Problems of limits and policy responses" in N J Rosenberg, W E Easterling, P R Crosson and J Darmstadter (editors) Greenhouse Warming: Abatement and Adaptation Washington, DC: Resources for the Future.
Cumberland J H (1982) "Overview" in J H Cumberland, J R Hibbs and I Hoch (editors) The Economics of Managing Chlorofluorocarbons: Stratospheric Ozone and Climate Issues Baltimore, MD: Johns Hopkins Press.
Daily G C, Ehrlich P R, Mooney H A and Ehrlich A H (1991) "Greenhouse economics: Learn before you leap" Ecological Economics 4: 1-10.
d'Arge R C (editor) (1975) Economic and Social Measures of Biological and Climatic Change, Vol. 6, Climate Impact Assessment Program, US Department of Transport.
d'Arge R C and Spash C L (1991) "Economic strategies for mitigating the impacts of climate change on future generations" in R Costanza (editor) Ecological Economics: The Science and Management of Sustainability New York: Columbia University Press.
Detwiler R P and Hall C A S (1988) "Tropical forests and the global carbon cycle" Science 239 (January): 42-47.
Dixon P, Johnson D, Marks R, McLennan P, Schodde R and Swan P (1989) "The feasibility and implications for Australia of the adoption of the Toronto proposal" Report to CRA, Sydney, Australia.
DOE (Department of the Environment) (1992) Press release 25th November, 1992 London.
Dornbusch R and Poterba J (1991) Economic Policy Responses to Global Warming Cambridge, Ma: MIT Press.
Dowd, R M (1985) "The greenhouse effect" Environmental Science and Technology 20 (8): 767.
Fisher A C (1981) Resource and Environmental Economics Cambridge: CUP.
Fitzroy F (1992) "Economic aspects of global warming: a comment" Green Values: Scottish Environmental Economics Discussion Group Newsletter 5.
Flavin C and Lenssen N (1990) Beyond the Petroleum Age: Designing a Solar Economy Washington DC: Worldwatch Institute.
Forziati A (1982) "The chlorofluorocarbon problem" in J H Cumberland, J R Hibbs and I Hoch (editors) The Economics of Managing Chlorofluorocarbons: Stratospheric Ozone and Climate Issues Baltimore, MD: Johns Hopkins Press.
Frior J W (1989) "The straight story about the greenhouse effect" Presented at the Western Economic Association International Meeting, June 18-22, Lake Tahoe, California.
Gates D M (1983) "An overview" in E R Lemon (editor) CO2 and Plants: The Response of Plants to Rising Levels of Atmospheric Carbon Dioxide Boulder, CO: Westview Press.
Goemans T (1986) "The sea also rises: The ongoing dialogue of the Dutch with the sea" in J G Titus (editor) Effects of Changes in Stratospheric Ozone and Global Climate, IV. US Environmental Protection Agency.
Hansen J, Lacis A, Rind D, Russell G, Furg I, Ashcroft P, Lebedeff S, Ruedy R and Stone P (1986) "The greenhouse effect: Projections of global climate change" in J G Titus (editor) Effects of Changes in Stratospheric Ozone and Global Climate, IV. US Environmental Protection Agency.
Heal G (1986) "The intertemporal problem" in D W Bromley (editor) Natural Resources, Economics Policy Problems and Contemporary Analysis Boston: Kluwer Nijhoff Publishing.
Henderson-Sellers B (1984) Pollution of Our Atmosphere Adam Hilger, Bristol.
Hoeller P, Dean A and Nicolaisen J (1991) "Macroeconomic implications of reducing greenhouse gas emissions: a survey of empirical studies" OECD Economic Studies 16: 45-78.
Hoffman J S (1986) "The importance of knowing sooner" in J G Titus (editor) Effects of Changes in Stratospheric Ozone and Global Climate, I, US Environmental Protection Agency.
Idso S B (1982) Carbon Dioxide: Friend or Foe? Tempe, Arizona: IBR Press.
Idso S B (1983) "Carbon dioxide and global temperature: What the data show" Journal of Environmental Quality 12 (2): 159-163.
Ingham A and Ulph A (1991) "Carbon taxes and the UK manufacturing sector" in F Dietz, F van der Ploeg and J van der Straaten (editors) Environmental Policy and the Economy Amsterdam: Elsevier.
International Energy Authority (1989) Energy and the Environment Paris: IEA.
Intergovernmantal Panel on Climate Change (IPCC) (1992) Climate Change 1992: The supplementary report to the IPCC scientific assessment Cambridge: Cambridge University Press.
Jaeger J (1989) "Developing policies for responding to climate change" in D E Abrahamson (editor) The Challenge of Global Warming Washington, DC: Island Press.
Jamieson D (1988) Managing the Future: Public Policy, Scientific Uncertainty, and Global Warming. Working Paper, Center for Values and Social Policy, Department of Philosophy, University of Boulder, CO.
Kerr R A (1977) "Carbon dioxide and climate: carbon budget still unbalanced" Science 197 (4311): September.
Khalil M A K and Rasmussen R A (1987) "Atmospheric methane trends over the last 10,000 years" Atmospheric Environment 21 (11): 2445-2452.
MacDonald G J (1988) "Scientific basis for the greenhouse effect" Journal of Policy Analysis and Management 7 (3): 425-444.
Manne A and Richels R (1991) "Global CO2 emission reductions: The impacts of rising energy costs" The Energy Journal 12 (1): 87-102.
Marland G and Rotty R M (1985) "Greenhouse gases in the atmosphere: What do we know?" Journal of Air Pollution Control Association 35 (10): 1033-1038.
Mlot C (1989) "Great lakes fish and the greenhouse effect" BioScience 39 (3): 145.
National Research Council (1984) Causes and Effects of Changes in Stratospheric Ozone: Update 1983 Washington, DC: National Academy Press.
Nordhaus W (1982) "How fast should we graze the global commons?" American Economic Review Association Papers and Proceedings 72 (2): 242-246.
Nordhaus W (1991a) "To slow or not to slow: The economics of the greenhouse effect" Economic Journal 101: 920-938.
Nordhaus W (1991b) "A sketch of the economics of the greenhouse effect" American Economic Review 81 (2): 146-150.
Office of Technology Assessment (1989) "An analysis of the Montreal protocol on substances that deplete the Ozone Layer" in D E Abrahamson (editor) The Challenge of Global Warming Washington, DC: Island Press.
Parry M (1990) Climate Change and World Agriculture London: Earthscan.
Pojman L P (1989) Ethical Theory: Classical and Contemporary Readings Belmont, Ca: Wadsworth.
Revelle R and Suess H E (1957) "Carbon dioxide exchange between atmosphere and ocean, and the question of an increase in atmospheric CO2 during the past decades" Tellus 9 (18): 18-27.
Roberts L (1989) "How fast can trees migrate?" Science 243: 735-737.
Rotty R M and Reister D B (1986) "Use of energy scenarios in addressing the CO2 question" Journal of Air Pollution Control Association 36 (10): 1111-1115.
Routley R and Routley V (1980) "Nuclear energy and obligations to the future" in E Partridge (editor) Responsibilities to Future Generations New York: Prometheus Books.
Schelling T (1992) "Some economics of global warming" American Economic Review 82 (1): 1-14.
Schneider S (1989) "The changing climate" Scientific American 216 (3): 38-47.
Schneider S and Rosenberg N (1990) "The greenhouse effect: Its causes, possible impacts and associated uncertainties" in N J Rosenberg, W E Easterling, P R Crosson and J Darmstadter (editors) Greenhouse Warming: Abatement and Adaptation Washington, DC: Resources for the Future.
Seneft D (1990) "Greenhouse effect may not be all bad" Agricultural Research 38: 20-23.
Spash C L (1993) "Economics, ethics and long-term environmental damages" Environmental Ethics 15 (2): 117-132.
Spash C L (1990) "Intergenerational transfers and long-term environmental damages: Compensation of future generations for global climate change due to the greenhouse effect" Unpublished manuscript pp.210.
Spash C L and d'Arge R C (1989) "The greenhouse effect and intergenerational transfers" Energy Policy 17 (2): 88-96.
Thomas R H (1986) "Future sea level rise and its early detection by satellite remote sensing" in J G Titus (editor) Effects of Changes in Stratospheric Ozone and Global Climate, IV. US Environmental Protection Agency.
Titus J G (1989) "The cause and effects of sea level rise" in D E Abrahamson (editor) The Challenge of Global Warming Washington, DC: Island Press.
UNEP (1991) Montreal Protocol 1991 Assessment Report of the Technology and Economic Assessment Panel.
Whalley J and Wiggle R (1991) "The international incidence of carbon taxes" in R Dornbusch and J Poterba (editors) Economic Policy Responses to Global Warming Cambridge, Ma: MIT Press.
Whiteman A (1991) "A comparison of the financial and non-market costs and benefits of replanting lowland forests" Paper presented to the Scottish Environmental Economics Discussion Group.
Wuebbles D J and Edmonds J (1988) "A primer on greenhouse gases" US Department of Energy Carbon Dioxide Research Division Washington, DC: GPO.
Wuebbles D J, Grant K E, Connell P S and Penner J E (1989) "The role of atmospheric chemistry in climate change" Journal of Air Pollution Control Association 39 (1): 22-28.