Beyond the Stern Review: Lessons from a Risky Venture at the Limits of the Cost-Benefit Analysis: Commentary

This paper argues that debates amongst economists triggered by the Stern Review are partly relevant, focusing on key parameters translating real ethical issues, and partly misplaced in that they do not consider enough other determinants of climate change damages: i) the specifications of the utility...

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Main Authors:	Hourcade, Jean-Charles, Ambrosi, Philippe, Dumas, Patrice
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Valuation of Environmental Effects Q510 Climate Natural Disasters Global Warming Q540
Online Access:	http://hdl.handle.net/10986/5856

id	okr-10986-5856
recordtype	oai_dc
spelling	okr-10986-58562021-04-23T14:02:23Z Beyond the Stern Review: Lessons from a Risky Venture at the Limits of the Cost-Benefit Analysis: Commentary Hourcade, Jean-Charles Ambrosi, Philippe Dumas, Patrice Valuation of Environmental Effects Q510 Climate Natural Disasters Global Warming Q540 This paper argues that debates amongst economists triggered by the Stern Review are partly relevant, focusing on key parameters translating real ethical issues, and partly misplaced in that they do not consider enough other determinants of climate change damages: i) the specifications of the utility function used for the assessments (preference for the environment, preference for smooth growth paths), ii) the interplay between uncertainty and the sequentiality of the decision, and iii) whether the growth engines behind the integrated assessment models can account for transient disequilibrium and sub-optimality. We derive some suggestions for any future research agenda in integrated assessment modelling, whatever the position of the analysts about the relevance of the intertemporal optimisation framework and the Bayesian approach to uncertainty in the climate affair. 2012-03-30T07:34:52Z 2012-03-30T07:34:52Z 2009 Journal Article Ecological Economics 09218009 http://hdl.handle.net/10986/5856 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Valuation of Environmental Effects Q510 Climate Natural Disasters Global Warming Q540
spellingShingle	Valuation of Environmental Effects Q510 Climate Natural Disasters Global Warming Q540 Hourcade, Jean-Charles Ambrosi, Philippe Dumas, Patrice Beyond the Stern Review: Lessons from a Risky Venture at the Limits of the Cost-Benefit Analysis: Commentary
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper argues that debates amongst economists triggered by the Stern Review are partly relevant, focusing on key parameters translating real ethical issues, and partly misplaced in that they do not consider enough other determinants of climate change damages: i) the specifications of the utility function used for the assessments (preference for the environment, preference for smooth growth paths), ii) the interplay between uncertainty and the sequentiality of the decision, and iii) whether the growth engines behind the integrated assessment models can account for transient disequilibrium and sub-optimality. We derive some suggestions for any future research agenda in integrated assessment modelling, whatever the position of the analysts about the relevance of the intertemporal optimisation framework and the Bayesian approach to uncertainty in the climate affair.
format	Journal Article
author	Hourcade, Jean-Charles Ambrosi, Philippe Dumas, Patrice
author_facet	Hourcade, Jean-Charles Ambrosi, Philippe Dumas, Patrice
author_sort	Hourcade, Jean-Charles
title	Beyond the Stern Review: Lessons from a Risky Venture at the Limits of the Cost-Benefit Analysis: Commentary
title_short	Beyond the Stern Review: Lessons from a Risky Venture at the Limits of the Cost-Benefit Analysis: Commentary
title_full	Beyond the Stern Review: Lessons from a Risky Venture at the Limits of the Cost-Benefit Analysis: Commentary
title_fullStr	Beyond the Stern Review: Lessons from a Risky Venture at the Limits of the Cost-Benefit Analysis: Commentary
title_full_unstemmed	Beyond the Stern Review: Lessons from a Risky Venture at the Limits of the Cost-Benefit Analysis: Commentary
title_sort	beyond the stern review: lessons from a risky venture at the limits of the cost-benefit analysis: commentary
publishDate	2012
url	http://hdl.handle.net/10986/5856
_version_	1764396558527234048

Beyond the Stern Review: Lessons from a Risky Venture at the Limits of the Cost-Benefit Analysis: Commentary

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