by Emil Morhardt
Should we plan to decrease fossil fuel use as quickly as possible to decrease damage from global warming? Maybe not according to Gustav Engström and Johan Gars (2016), Swedish economists, who consider the possibility that planned reduction of fossil fuel use might cause suppliers of it to increase production now in advance of potential decreased value of it in the future.
Their focus is economically-important climatic tipping points—relatively sudden climatic changes triggered by gradual global warming—that could have drastic economic consequences; they are less concerned with environmental damage with low immediate economic consequences, and they argue that most economists have modelled the effects of climate change without taking climatic tipping points into consideration. These potential tipping points, however, might not exist, in which case, they argue, it would be best to proceed gradually with climate reforms, but develop a strategy to deal with any tipping points should they occur. Continue reading