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Climate Change Policy

Jason F. Shogren

University of Wyoming - College of Business - Department of Economics and Finance

Michael Toman

World Bank - Development Research Group (DECRG)

May 2000

Resources for the Future Working Paper No. 00-22

Having risen from relative obscurity as few as ten years ago, climate change now looms large among environmental policy issues. Its scope is global; the potential environmental and economic impacts are ubiquitous; the potential restrictions on human choices touch the most basic goals of people in all nations; and the sheer scope of the potential response ? a significant shift away from using fossil fuels as the primary energy source in the modern economy ? is daunting. In this paper, we explore the economics of climate change policy. We examine the risks that climate change poses for society, the benefits of protection against the effects of climate change, and the costs of alternative protection policies. We organize our discussion around three broad themes: why costs and benefits matter in assessing climate change policies, as does the uncertainty surrounding them; why well-designed, cost-effective climate policies are essential in addressing the threat of climate change; and why a coherent architecture of international agreements is key to successful policy implementation. We conclude the paper with a summary of key policy lessons and gaps in knowledge.

Number of Pages in PDF File: 44

JEL Classification: Q25, Q28, Q48

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Date posted: October 16, 2000  

Suggested Citation

Shogren, Jason F. and Toman, Michael, Climate Change Policy (May 2000). Resources for the Future Working Paper No. 00-22. Available at SSRN: http://ssrn.com/abstract=230971 or http://dx.doi.org/10.2139/ssrn.230971

Contact Information

Jason F. Shogren
University of Wyoming - College of Business - Department of Economics and Finance ( email )
121 Ross Hall
Laramie, WY 82071-3985
United States
307-766-5430 (Phone)
307-766-5090 (Fax)
Michael Toman (Contact Author)
World Bank - Development Research Group (DECRG) ( email )
1818 H. Street N.W.
Washington, DC 20433
United States
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References:  130
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