This text on the economics of climate change and climate policy can be used at three different levels - advanced undergraduate, post-graduate and doctoral. It covers the critical issues and clearly identifies the specific sections each level of reader should explore

Weitzman's Dismal Theorem has that the expected net present value of a stock problem with a stochastic growth rate with unknown variance is unbounded. Cost-benefit analysis can therefore not be applied to greenhouse gas emission control. We use the Generalized Central Limit Theorem to show that...