The Economics of Global Climate
Change
1 Causes and consequences of climate change
The atmosphere is a global commons into which individuals and firms can release
pollution.
In many countries environmental protection laws limit the release of local and regional air
pollutants.
If indeed the effects of climate change are likely to be severe, it is in everyone’s interest to
lower their emissions for the common good. If no agreement or rules on emissions exist,
actions by individual firms, cities or nations will be inadequate. Climate change can thus be
viewed as a public good issue, requiring collaborative action. Since the problem is global,
only a strong international agreement binding nations to act for the common good can
prevent serious environmental consequences.
Because CO2 and other greenhouse gases continuously accumulate in the atmosphere,
stabilizing or “freezing” emissions will not solve the problem.
Greenhouse gases are stock pollutants: only major reductions in emissions, to a level
consistent with the planet’s absorptive capacity, will prevent ever-increasing atmospheric
accumulations.
Trends and Projections for Global Carbon Emissions
Progress on combating global climate change has been slow, despite three global
conferences dealing with the issue:
- the 1992 United Nations Conference on Environment and Development (UNCED) at
Rio de Janeiro,
- a 1997 meeting in Kyoto, Japan that produced the agreement known as the Kyoto
Protocol,
- the World Summit on Sustainable Development in 2002
the industrialized countries were responsible for just over half of global carbon emissions.
However most of the growth in future carbon emissions is expected to come from rapidly
expanding developing economies
Trends and Projections for Global Climate
Warmer temperatures have produced noticeable effects on ecosystems:
- In most regions of the world, glaciers are retreating
- Climate change is also leading to rising sea levels
Change
1 Causes and consequences of climate change
The atmosphere is a global commons into which individuals and firms can release
pollution.
In many countries environmental protection laws limit the release of local and regional air
pollutants.
If indeed the effects of climate change are likely to be severe, it is in everyone’s interest to
lower their emissions for the common good. If no agreement or rules on emissions exist,
actions by individual firms, cities or nations will be inadequate. Climate change can thus be
viewed as a public good issue, requiring collaborative action. Since the problem is global,
only a strong international agreement binding nations to act for the common good can
prevent serious environmental consequences.
Because CO2 and other greenhouse gases continuously accumulate in the atmosphere,
stabilizing or “freezing” emissions will not solve the problem.
Greenhouse gases are stock pollutants: only major reductions in emissions, to a level
consistent with the planet’s absorptive capacity, will prevent ever-increasing atmospheric
accumulations.
Trends and Projections for Global Carbon Emissions
Progress on combating global climate change has been slow, despite three global
conferences dealing with the issue:
- the 1992 United Nations Conference on Environment and Development (UNCED) at
Rio de Janeiro,
- a 1997 meeting in Kyoto, Japan that produced the agreement known as the Kyoto
Protocol,
- the World Summit on Sustainable Development in 2002
the industrialized countries were responsible for just over half of global carbon emissions.
However most of the growth in future carbon emissions is expected to come from rapidly
expanding developing economies
Trends and Projections for Global Climate
Warmer temperatures have produced noticeable effects on ecosystems:
- In most regions of the world, glaciers are retreating
- Climate change is also leading to rising sea levels
