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The Economics of the Climate/Development of the Gordian Knot; Beyond a Sound Pessimism

We will first suggest that costs of meeting ambitious climate targets capable to stabilize global warming below 2°C or 3°C temperature increase have been underestimated so far. The first reason is the underestimation of baseline emission scenarios, the second is the magnitude of transition costs towards a low carbon development profile in emerging economies. Second we will show that this pessimistic diagnosis does not lead to inaction but to a reframing of discussions on future international coordination of climate action. We will insist on the necessity of complementing the conventional approaches relying on the emergence of a world carbon price ...
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