The Economics of Climate Change: Alternative Approaches

This chapter seeks to address the central question of how best to model the economic impact of climate change. Such an endeavor necessarily raises multiple sub-questions for examination. For example, should econometric or computable general equilibrium (CGE) models be used? Are they binary choices? Which parameters and sectors should be included in the model specification? Should models focus on the economic effect of climate policy or on climate events? Should different models be used for different geographic regions?