Steering the Climate System: An Extended Comment

36 Pages Posted: 21 Feb 2019

See all articles by Linus Mattauch

Linus Mattauch

University of Oxford

Richard Millar

University of Oxford

Rick van der Ploeg

University of Oxford

Armon Rezai

Vienna University of Economics and Business

Anselm Schultes

Potsdam-Institut für Klimafolgenforschung (PIK)

Frank Venmans

University of Mons - Microeconomics Department

Nico Bauer

Potsdam-Institut für Klimafolgenforschung (PIK)

Simon Dietz

London School of Economics - Grantham Research Institute on Climate Change and the Environment and Department of Geography and Environment

Ottmar Edenhofer

Potsdam Institute for Climate Impact Research (PIK); Mercator Research Institute on Global Commons and Climate Change (MCC); Technische Universität Berlin (TU Berlin)

Niall Farrell

Potsdam-Institut für Klimafolgenforschung (PIK)

Cameron Hepburn

University of Oxford

Gunnar Luderer

Potsdam-Institut für Klimafolgenforschung (PIK)

Jacquelyn Pless

University of Oxford

Fiona Spuler

University of Oxford

Nicholas Stern

London School of Economics & Political Science (LSE) - Grantham Research Institute on Climate Change and the Environment

Alexander Teytelboym

University of Oxford

Date Written: 2018

Abstract

Lemoine and Rudik (2017) argue that it is efficient to delay reducing carbon emissions, because there is substantial inertia in the climate system. However, this conclusion rests upon misunderstanding the relevant climate physics: there is no substantial lag between CO2 emissions and warming, which policy could rely upon. Applying a mainstream climate physics model to the economics of Lemoine and Rudik (2017) invalidates the article’s implications for climate policy: the cost-effective carbon price that limits warming to a range of targets including 2 oC starts high and increases at the interest rate.

JEL Classification: H230, Q540, Q580

Suggested Citation

Mattauch, Linus and Millar, Richard and van der Ploeg, Frederick and Rezai, Armon and Schultes, Anselm and Venmans, Frank and Bauer, Nico and Dietz, Simon and Edenhofer, Ottmar and Farrell, Niall and Hepburn, Cameron and Luderer, Gunnar and Pless, Jacquelyn and Spuler, Fiona and Stern, Nicholas and Teytelboym, Alexander, Steering the Climate System: An Extended Comment (2018). CESifo Working Paper No. 7414. Available at SSRN: https://ssrn.com/abstract=3338768

Linus Mattauch (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Richard Millar

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Frederick Van der Ploeg

University of Oxford ( email )

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom

Armon Rezai

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

Anselm Schultes

Potsdam-Institut für Klimafolgenforschung (PIK) ( email )

Telegraphenberg
Potsdam, Brandenburg 14412
Germany

Frank Venmans

University of Mons - Microeconomics Department ( email )

Mons
Belgium

Nico Bauer

Potsdam-Institut für Klimafolgenforschung (PIK) ( email )

Telegrafenberg 31
Potsdam, Brandenburg 14473
Germany

Simon Dietz

London School of Economics - Grantham Research Institute on Climate Change and the Environment and Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://personal.lse.ac.uk/dietzs

Ottmar Edenhofer

Potsdam Institute for Climate Impact Research (PIK) ( email )

P.O. Box 601203
14412 Potsdam, Brandenburg
Germany

Mercator Research Institute on Global Commons and Climate Change (MCC)

Torgauer Straße 12-15
Berlin, 10829
Germany

Technische Universität Berlin (TU Berlin)

Straße des 17
Juni 135
Berlin, 10623
Germany

Niall Farrell

Potsdam-Institut für Klimafolgenforschung (PIK) ( email )

Telegrafenberg 31
Potsdam, Brandenburg 14473
Germany

Cameron Hepburn

University of Oxford ( email )

Oxford
United Kingdom

Gunnar Luderer

Potsdam-Institut für Klimafolgenforschung (PIK) ( email )

Telegraphenberg
Potsdam, Brandenburg 14412
Germany

Jacquelyn Pless

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Fiona Spuler

University of Oxford

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Nicholas Stern

London School of Economics & Political Science (LSE) - Grantham Research Institute on Climate Change and the Environment ( email )

Houghton Street
London, WC2A 2AE
Great Britain

Alexander Teytelboym

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

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