The Value of Avoiding Climate Change

Geoffrey Heal and Yatang Lin

Working Papers from Columbia - Graduate School of Business

Abstract: What costs is it worth incurring to avoid the risk of climate change? People rarely think of this as a question amenable to a precise answer. Yet an answer can be calculated: it depends on the following four parameters (at least). These are (1) the probability distribution of the effects of climate change, (2) the degree to which we are risk averse, (3) the date at which the climate change will occur, and (4) the rate at which we discount future benefits and costs relative to those in the present.

Keywords: RISK; CLIMATE; COSTS (search for similar items in EconPapers)
JEL-codes: D81 Q20 (search for similar items in EconPapers)
Pages: 9 pages
Date: 1997
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:colubu:97-10

Access Statistics for this paper

More papers in Working Papers from Columbia - Graduate School of Business U.S.A.; COLUMBIA UNIVERSITY, GRADUATE SCHOOL OF BUSINESS, PAINE WEBBER , New York, NY 10027 U.S.A. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().