To What Extent is Cost-Benefit Analysis Useful in Evaluating Climate Change Mitigation Policies?
DOI:
https://doi.org/10.22105/jeee.v2i1.42Keywords:
Cost benefit analysis, Climate, Climate change, Mitigation policiesAbstract
Climate Change (CC) is evident due to rising sea levels, melting glaciers, and altered rainfall patterns. Increased global warming from infrared radiation and greenhouse gas emissions, with average temperatures forecasted to rise by 0.2°C every ten years, is negatively impacting the economy and the health of all living creatures. CC mitigation policies face unprecedented economic and political challenges due to their complexity and intricacy. Cost-Benefit Analysis (CBA) has been used to analyse the impact of these policies, but it has limitations such as inability to accurately evaluate benefits and costs to economy, society, and environment. Despite these limitations, CBA is often used to communicate benefits to decision-makers, determine the value of public investments, and create economic arguments for risk reduction.
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