GHG Targets as Insurance Against Catastrophic Climate Damages

@article{Weitzman2010GHGTA,
  title={GHG Targets as Insurance Against Catastrophic Climate Damages},
  author={Martin Weitzman},
  journal={NBER Working Paper Series},
  year={2010}
}
  • M. Weitzman
  • Published 1 June 2010
  • Environmental Science
  • NBER Working Paper Series
A critical issue in climate-change economics is the specification of the so-called "damages function" and its interaction with the unknown uncertainty of catastrophic outcomes. This paper asks how much we might be misled by our economic assessment of climate change when we employ a conventional quadratic damages function and/or a thin-tailed probability distribution for extreme temperatures. The paper gives some numerical examples of the indirect value of various GHG concentration targets as… 

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