Comment on "On the Economics of Climate Policy": Is Climate Change Mitigation the Ultimate Arbitrage Opportunity?
Name
Deshpande-2010-Comment on On the Economics of Climate Policy.pdf
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364.41 KB
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Checksum (MD5)
16b0b75486842794b2125934348dad4a
Author(s)
Greenstone, Michael
Deshpande, Manasi Abhay
Date Issued
November 2011
Journal
B E Journal of Economic Analysis and Policy
Publisher
Berkeley Electronic Press
Citation
Deshpande, Manasi, and Michael Greenstone. “Comment on ‘On the Economics of Climate Policy’: Is Climate Change Mitigation the Ultimate Arbitrage Opportunity?” The B.E. Journal of Economic Analysis & Policy 10.2 (2011). Copyright © 2011 by De Gruyter
Version
Final published version
Abstract
Gary Becker, Kevin Murphy, and Robert Topel’s (BMT), “On the Economics of
Climate Policy,” is an important paper that deepens our understanding of what
some have referred to as the challenge of our generation. It is an excellent
example of how basic price theory can be used to gain a better understanding of
the world. The paper is filled with insights, including how to determine the
appropriate discount rate to value investments in climate mitigation, the
importance of the distribution of damages across the population, the smaller than
expected costs of delay in undertaking research and development programs for
clean energy sources, and a cogent defense of analyzing investments in carbon
mitigation with standard cost-benefit tools.
MIT Department
Massachusetts Institute of Technology. Department of Economics
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Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.2202/1935-1682.3082
