Climate Policy Foundations
Science and Economics with Lessons from Monetary Regulation

Whitesell discusses the efforts of scientists to understand earth's climate history and possible risk management policies.

William C. Whitesell (Author)

9781107002289, Cambridge University Press

Hardback, published 17 January 2011

254 pages
22.9 x 15.2 x 1.7 cm, 0.54 kg

'Whitesell's book should be a must-read for anybody attempting to tackle the challenge of our warming Earth. Rather than presenting the black-or-white, all-or-nothing picture that so often characterizes our political debate, Whitesell provides the reader with the shades of gray that truly dominate the debate, and provides a sense of the risk management decisions necessary to attack the resulting uncertainty. May our leaders find a way to bring as sophisticated an approach to the great challenge of climate change!' Timothy Profeta, Duke University

This book provides a thorough grounding in the science and economics of climate policy issues and draws key lessons from the longer experiences of central banks in grappling with related challenges. Findings and controversies of climate history and the effects of human activities on climate are reviewed. The author describes similarities in risk management approaches for climate and monetary policy. Overall goals and frameworks for addressing climate change risks are assessed. Command-and-control and market-based options are compared (including performance standards, taxes and cap-and-trade). Market-based approaches sometimes require a choice between prices and quantities as policy instruments. However, the author discusses how techniques of central bank interest rate management can be adapted in a hybrid climate policy approach to achieve environmental goals while making carbon prices predictable and also ensuring well-functioning carbon markets. Key lessons are offered for improving existing and future national and international climate policy architectures.

Introduction
Part I. Earth's Climate History and Outlook: 1. Salient events of climate history
2. Human and climate interactions
3. Greenhouse gases
4. Emitting economic sectors
5. Forecasts of GHG emissions and global temperatures
6. Potential impacts of climate change
Part II. Climate Policy Choices: 7. Climate policy goals
8. Policy mandates and market-based approaches
9. The design of cap-and-trade programs
10. Prices, quantities and lessons from monetary policy
11. The outlook for climate policies
Appendix: discount rates in climate analysis.

Subject Areas: Pollution & threats to the environment [RNP], Environmentalist thought & ideology [RNA], Environmental economics [KCN], Economics [KC]