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Recommend “Frank Ackerman” - Popular climate econ model needs major overhaul (Email)

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by Frank Ackerman

March 15, 2011

http://www.grist.org/article/2011-03-15-popular-climate-econ-model-needs-major-overhaul

True or false: Risks of a climate catastrophe can be ignored, even as temperatures rise? The economic impact of climate change is no greater than the increased cost of air conditioning in a warmer future? The ideal temperature for agriculture could be 17 degrees C (30 degrees F) above historical levels?

All true, according to the increasingly popular Climate Framework for Uncertainty, Negotiation, and Distribution (FUND) model of climate economics. It is one of three models used by the federal government's Interagency Working Group to estimate the "social cost of carbon" -- that is, the monetary value of the long-term damages done by greenhouse gas emissions. According to FUND, as used by the Working Group, the social cost of carbon is a mere $6 per ton of CO2. That translates into $0.06 per gallon of gasoline. Do you believe that a tax of $0.06 per gallon at the gas pump (and equivalent taxes on other fossil fuels) would solve the climate problem and pay for all future climate damages?


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