Paul Krugman on Bill Nordhaus and Climate Change: Insights not Answers

by Fran Sussman

Paul Krugman’s review of Bill Nordhaus’s recent book, The Climate Casino: Risk, Uncertainty, and Economics for a Warming World, is thoughtful and informative.  But it unintentionally raises some difficult questions about the role of benefit-cost analysis in assessing the consequences of climate policy, and whether focusing on this type of analysis draws resources and attention away from other, more important topics in economics.

Benefit-cost analysis of global climate change is fundamentally either an academic exercise or one intended to shape public opinion.  The Climate Casino is a little of both. (more…)

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