The behavioral economics and politics of global warming : unsettling behaviors / Hersh Shefrin.

Format:

Book

Author/Creator:

Shefrin, Hersh, 1948- author.

Series:

Cambridge elements. Elements in quantitative finance, 2631-8571.

Cambridge elements. Elements in quantitative finance, 2631-8571

Language:

English

Subjects (All):

Economics--Psychological aspects.

Economics.

Global warming--Economic aspects.

Global warming.

Global warming--Political aspects.

Physical Description:

1 online resource (102 pages) : digital, PDF file(s).

Edition:

First edition.

Place of Publication:

Cambridge : Cambridge University Press, 2023.

Summary:

The main goal of this Element is to provide a psychological explanation for why actual global climate policy is so much at odds with the prescriptions of most neoclassical economists. To be sure, the behavioral approach does focus on why neoclassical models are often psychologically unrealistic. However, in this Element the author argues that the unrealistic elements are minor compared to the psychological pitfalls driving politically determined climate policy. Why this is the case is what the author describes as 'the big behavioral question.' More precisely, the big behavioral question asks why there is a huge gap between actual policy and even the weakest of the prescriptions in the range of plausible prescriptions coming from neoclassical economists' integrated assessment models. This title is also available as Open Access on Cambridge Core.

Contents:

Cover

Title page

Copyright page

The Behavioral Economics and Politics of Global Warming: Unsettling Behaviors

Contents

1 Introduction

1.1 Drivers of the Global Community's Response to Global Warming

1.2 Climate Scientists

1.3 Integrated Assessment Models

1.4 Politics

1.5 Synopsis

2 Fear Based on Scientific Models of Global Warming

2.1 The Charney Report, 1979: Cause for Concern

2.2 Hansen, 1981: Equations to Fear

2.3 Sagan, 1985: Data from Venus to Fear

2.4 Hansen, 1988: Temperature Predictions to Fear

2.5 Updated Charts and Analysis to Fear

2.6 Fear Stemming from the Methane Emergency

2.7 Key Takeaways

3 The Nordhaus Integrated Assessment Model

3.1 Structure of DICE: General Character

3.2 The Microeconomic Representation of the Global Economy

3.3 The General Character of the DICE-Optimal Solution

3.4 Competitive Equilibrium and Climate Finance

3.5 How Climate Finance Is Embodied within DICE

3.6 Pricing Carbon at Its Social Cost

3.7 The Climate-Policy Ramp

3.8 Free Riders and Carbon Clubs

3.9 Comparing Business-As-Usual and Optimal Cases

3.10 Debates about Technological Progress and the Shape of the Future

3.11 Key Takeaways

4 Behavioral Analysis of the Nordhaus-Stern Debate

4.1 Nordhaus versus Stern: Setting the Stage

4.2 Different Perspectives about Climate Ethics

4.3 Behavioral Issues in the Spirit of Irving Fisher

4.3.1 Irving Fisher's Perspective

4.3.2 Two-System Thinking and Self-Control

4.3.3 Hyperbolic Discounting and Market Aggregation

4.4 Risk

4.4.1 Trajectories for Carbon Dioxide Concentration and Atmospheric Temperature

4.4.2 Climate Risks

4.4.3 Thoughts on the Fundamental Tension

4.4.4 Did Nordhaus Ignore Risk?

4.5 The Debate's Indiscernible Impact on Actual Climate Policy

4.6 Key Takeaways.

5 Psychology, Politics, and Climate Policy: Unsettling Behaviors

5.1 The Psychology of Risk

5.2 1993: An Unsettling Dark Nudging Campaign to Prevent the Imposition of a Carbon Tax

5.3 2010: The Unsettling Failure to Enact Cap-and-Trade Legislation

5.4 After 2010: Unsettling Polarized Politics

5.5 Unsettling Psychological Issues Involving ESG Investing

5.6 Psychology of Unsettling Behaviors Stemming from Skepticism and Denial

5.7 Unsettling Psychological Issues in Global Political Dynamics

5.8 Key Takeaways

6 Hope for Reversing Global Warming

6.1 Greenhouse Gas Removal, Integrated Assessment Models, Risk, and Uncertainty

6.2 Behavioral Risk Modeling Issues

6.2.1 Biased Estimates, Sentiment

6.2.2 Non-maximizing Firms

6.3 Key Takeaways

Acknowledgments.

Notes:

Title from publisher's bibliographic system (viewed on 19 Oct 2023).

ISBN:

9781009454872

1009454870

9781009454889

1009454889

9781009454919

1009454919

Access Restriction:

Open Access. Unrestricted online access