ABSTRACT
In 1988 the World Conference on the Changing Atmosphere endorsed a strategy of phased reductions in greenhouse gas emissions aimed at protecting future generations from harm and abating the uncertain but potentially catastrophic impacts of climate change (World Meteorological Organization 1988). From that time to the present, the values and normative judgments behind this proposed strategy have been controversial amongst economists. Manne and Richels (1992: 1), for example, quipped that “the greenhouse debate is short on facts and long on rhetoric … [A]ctivists – many with backgrounds in the physical sciences – point to the potential for disastrous long-term trends in the global climate.” In a related vein, Nordhaus (1992, 2008) has long argued that deep reductions in greenhouse gas emissions would reduce social welfare in a manner inconsistent with the achievement of economic efficiency. In this chapter, we shall explore the current status of this long-standing debate, drawing in part on our previous work (Howarth 1998; Gerst et al. 2013) in the context of the broader and evolving literature.
