POSTPONED TO 2021 The Economics of Climate Change
SpeakerRobert S. Pindyck (MIT)
LocationTinbergen Institute, Gustav Mahlerplein 117 Amsterdam Amsterdam
May 13, 2020 until May 15, 2020
Robert S. Pindyck is the Bank of Tokyo-Mitsubishi Professor of Economics and Finance in the Sloan School of Management at MIT. He is also a Research Associate of the National Bureau of Economic Research and a Fellow of the Econometric Society, and he has been a Visiting Professor at Tel-Aviv University, Harvard University, and Columbia University.
These lectures will provide an introduction to the economic analysis of climate change and climate policy. Professor Pindyck will explain what we know and don’t know about climate change, with an emphasis on the nature of the uncertainty over climate outcomes, and the implications of that uncertainty for policy. The uncertainty is crucial because of the insurance value it creates, and because it interacts with irreversibilities. (Environmental damage can be irreversible, which increases the value of conservation, but a policy itself imposes irreversible costs on society, which works in the opposite direction.) We will see that policy is largely driven by the possibility of an extreme outcome – a “climate catastrophe.” And that will lead us to the economic analysis of catastrophes more generally: How should society respond to the variety of potential global catastrophes we face?