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A critical issue in climate-change economics is the specification of the so-called "damages function" and its interaction with the unknown uncertainty of catastrophic outcomes. This paper asks how much we might be misled by our economic assessment of climate change when we employ a conventional...
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of the reductions in external damages are health benefits, highlighting the importance of accounting for co-pollution …
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(United States) and the South (China) in the presence of a global pollution externality. Each country's share of global … pollution depends on its share of world capital. The authors show that, if the disutility of pollution in the United States is … the increased pollution in China has global effects, the US may not benefit from the environmental restrictions and a …
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) and the South (China) in the presence of a global pollution externality. Each country's share of global pollution depends … on its share of world capital. We show that, if the disutility of pollution in the United States is high, there will be … pressure on the US to raise environmental regulations on industry. Capital will move to China. Because the increased pollution …
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There is a lot we know about climate change, but there is also a lot we don't know. Even if we knew how much CO2 will be emitted over the coming decades, we wouldn't know how much temperatures will rise as a result. And even if we could predict the extent of warming that will occur, we can say...
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