Nationaløkonomisk tidsskrift,
Nationaløkonomisk Forening

Abstract: The benchmark is equal to the cost (D) caused by an increase in temperature since the middle of the nineteenth century (T) of nearly 2.5º C. According to mainstream economists, the benchmark is 1-2% of GDP, but very different estimates can also be found. Even though there appears to be agreement among a number of economists that the benchmark is 1-2% of GDP, major differences exist when it comes to estimating D for different sectors. One of the main problems is how to estimate non-market activi - ties. Normally, the benchmark is the best guess, but due to the possibility of catastrophic events this can be considerable smaller than the mean. Certainly, the cost function is skewed to the right. The benchmark is just one point on the cost curve. To a great extent, cost functions are alike in greenhouse models (D = ·T ). Cost functions are region and sector dependent in several models. In any case, both (benchmark) and are rough estimates. Besides being dependent on and , the marginal emission cost depends on the discount rate. In fact, because emissions have effects continuing for many years, the discount rate is clearly the most important parameter.

Keywords: drivhusmodeller; klimadata

JEL-codes: A10

Language: Danish

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