Wednesday, 29 July 2015

On the economics of the end of the world as we know it

In December talks in Paris involving more than 200 countries may result in a new agreement aimed at reducing carbon emissions. In the months leading up to the conference, The Economist will be publishing guest columns by experts on the economic issues involved. Here, Christoph Rheinberger (pictured right) and Nicolas Treich (at left) of the Toulouse School of Economics explain why quantifying the cost of global climate change is so difficult.

CLIMATE change puts humanity at risk. The Pope’s celebrated encyclical letter on the subject released last month emphasised this risk “for our common home”, arguing that “doomsday predictions can no longer be met with irony or disdain”.  But apocalyptic predictions are often made by religious groups. So, how serious is this claim?

Perhaps for the first time in history, there seems to be a broad consensus among scientists. They claim that our planet might face a frightening future if we cannot agree to take decisive actions here and now. Changes to how seawater circulates in the...Continue reading

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