Whither climate change post-Paris?

Abstract

The Paris Climate Agreement has been welcomed by many as providing a remarkably strong basis for global action on anthropogenically mediated climate change, by underpinning a highly ambitious, very clever and forward-looking political process. On the other hand, the sum total of the fresh emission reductions pledged is very small. A new climate-economics model is explored to help focus on two key points remaining at issue post-Paris, namely where are we now and where are we headed? The output reinforces the unpalatable finding that in the absence of even stronger carbon-pricing policies, temperatures and sea-level will, this century, rise significantly beyond what are currently deemed to be ‘dangerous’ levels. Pigouvian taxes have long been championed by economists as providing a simple, down-to-earth corrective remedy for market failures, such as excessive carbon emissions. The Wilsonian modification, or ‘feebate’, provides an attractive modern variant that could easily be implemented post-Paris.