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Climate Change

Climate change is perhaps the seminal issue that will confront the world in the 21st century. Across the globe, melting glaciers, flooding, droughts, reductions in crop yields, increased food prices, species extinction, as well as negative consequences on health and human wellbeing, have all been attributed to climate change. While climate change has been a topic of deep exploration among natural scientists for a number of years, economists have yet to apply the full academic rigor of their discipline to this grand challenge. Solving this problem effectively and efficiently will require the application of economic theory to harness the power of markets and channel private incentives towards socially beneficial ends.

The Institute elevates awareness for climate change through a series of events for the public and funds research to advance the theoretical and quantitative analysis of the economics of climate change.

Oil Refinery

POLICY BRIEF: Calibrating the Price of Climate Risk

Science reveals that doing nothing about fossil fuel emissions is leading to shattering changes in the earth’s climate. But how do we measure the cost of doing nothing today? A novel economic model puts a price on inaction, revealing that billions quickly turn into trillions in foregone consumption tied to climate change. It’s a mathematical argument for moving quickly to adopting a carbon tax in order to avert the unimaginable costs of delay.