William Nordhaus’s Preference for Moderate Warming

In many models of the economics of climate change you may find the assumption that moderate warming (mostly something in the range of 2-3° centigrade) would be beneficial in some way or another. One line of argumentation is that people, at least those living in higher latitudes, would prefer this “slight” rise in global mean temperatures. One of the economists working with this assumption is William Nordhaus, who built it into his integrated assessment model DICE. Continue reading