I already have written on why monetizing the losses from climate change must lead to flawed results and therefore to flawed reaction proposals (see here). But there still are other problems related to taking GDP estimates as the basis for analyzing the economics of climate change, which I haven’t mentioned.
Most climate scientists are calling for immediate and decisive action of the global community needed if we want to prevent global warming from devastating our world. Since they are people who have dealt with the subject professionally for years, there is no reason not to believe them. Nevertheless, distinguished economists who work on climate change (e.g. William Nordhaus or Richard Tol) are calling to slow down, claiming that immediate and decisive action not only is not necessary – it could be harmful to the world economy as well. Whom should one trust? And why the differences? Continue reading