chapter  Chapter 7
The economics of climate engineering
WithJuan B. Moreno-Cruz, Katharine L. Ricke, Gernot Wagner
Pages 4

The most apt description of the economics of geoengineering came in Barrett, which described it as "incredible" due to the small costs of solar radiation management (SRM). Enter climate engineering in the form of planetary albedo modification, or SRM. Although it is both cheap and fast, SRM is clearly an imperfect method of countering climate change. Two types of standard economic tools are most prominent in the economic analysis of geoengineering: benefit-cost analysis and game theory. A perhaps less controversial argument is that SRM could serve as a form of insurance of last resort, in case of a worst-case climatic scenario. Likely climate outcomes should provide sufficient impetus for action on mitigation. It's clear that the potentially dire economic consequences of such phenomena contribute disproportionately to the risks associated with global warming. The extent to which SRM could stop or slow the progression of extreme climate change after its commencement or detection is unknown.