Great Information

In: Computers and Technology

Submitted By gf2012
Words 1088
Pages 5
Heated debate
The costs of climate change can be mitigated if economic activity moves in response
Dec 8th 2012 | from the print edition • • Tweet
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WHEN Superstorm Sandy roared ashore in late October and the lights of lower Manhattan went out, New Yorkers were given a stark vision of a possible future. Climate-change science is still a realm of great uncertainty but there is consensus that the planet is warming dangerously and that people are to blame. A recent report commissioned by the World Bank warned that the world is on track to have a global mean temperature that is 4°C above pre-industrial levels by 2100. If so, sea levels could rise by between half a metre and a metre by the end of the century, threatening hundreds of millions of people in coastal cities. Other regions would face the threats of droughts, bigger storms and changing rainfall patterns. That entails not just human costs but economic ones, too.

The question that preoccupies Klaus Desmet of the Universidad Carlos III in Madrid and Esteban Rossi-Hansberg of Princeton University in a new NBER working paper* is whether there are ways to manage the impact of changing weather patterns by moving the location of economic activity. They note that roughly 90% of global production uses just 10% of available land. If that 10% is threatened, activity may at least theoretically shift to bits of the 90% made more hospitable by climate change.

In this section • Monti’s medicine • Just a phase I was going through • Accountable • DIY capital • Happy now? • The cult of Equity • »Heated debate • Correction: Spanish banks
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Messrs Desmet and Rossi-Hansberg build a model economy, and then batter it with different…...

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