Economic Theory and Global Warming

This book provides an economic framework for modeling global warming and addressing its negative effects.

Hirofumi Uzawa (Author)

9780521066594, Cambridge University Press

Paperback / softback, published 27 October 2008

292 pages
22.7 x 15.1 x 1.9 cm, 0.48 kg

'Global climate change presents important challenges and interesting problems for economic theory and empirical policy analysis, because of climate change's massive scale, long time horizon, and fundamental uncertainty. There is no one better equipped to write a book on the relationship between economic theory and global warming than Hirofumi Uzawa, the distinguished theorist from the University of Tokyo. This book will advance discussions among economists and become a standard reference for the profession.' Robert Stavins, Harvard University

In this book, Professor Uzawa modifies and extends the theoretical premises of orthodox economic theory to those broad enough to be capable of analyzing the phenomena related to environmental disequilibrium, particularly global warming, and of finding institutional arrangements and policy measures that may bring about a more optimal state where natural and institutional components are harmoniously blended. He constructs a theoretical framework in which three major problems concerning global environmental issues may effectively be addressed. First, all phenomena involved with global environmental issues exhibit externalities of one kind or another. Secondly, global environmental issues involve international and intergenerational equity and justice. Thirdly, global environmental issues concern the management of the atmosphere, the oceans, water, soil, and other natural resources that have to be decided by a consensus of all affected countries.

1. Global warming and carbon taxes
2. Pareto-optimality and social optimum
3. Global warming and tradeable emission permits
4. Global warming - dynamic analysis
5. Dynamic optimality and sustainability
6. Global warming and forests - an alternative approach
7. Global warming as a cooperative game.

Subject Areas: Environmental economics [KCN], Economics [KC]