Economics and climate applications: exploring the frontier

Abstract

CR Climate Research Contact the journal Facebook Twitter RSS Mailing List Subscribe to our mailing list via Mailchimp HomeLatest VolumeAbout the JournalEditorsSpecials CR 33:43-54 (2006) - doi:10.3354/cr033043 Economics and climate applications: exploring the frontier Debra J. Rubas1,*, Harvey S. J. Hill2, James W. Mjelde3 1United States Department of Agriculture, Foreign Agricultural Service, 1400 Independence Avenue SW, Stop 1034, Washington, DC 20250, USA 2Agriculture and Agri-Food Canada, Prairie Farm Rehabilitation Administration, Room 1101, 11 Innovation Blvd., Saskatoon, Saskatchewan S7N3H5, Canada3Department of Agricultural Economics, Texas A&M University, College Station, Texas 77843-2124, USA *Email: debbie.rubas@fas.usda.gov ABSTRACT: The economics of information is a broad field covering all aspects of information including decision making. We briefly describe 4 methods used to model the decision-making process. This is not an exhaustive list of the methods used to value information, nor are differences between the methods clearly definable. Examples of previous studies using each methodology are presented, as are tradeoffs between the methodologies. Climate forecast issues are generally treated by economists as applied problems. Though applied studies are extremely important, we believe climate forecast issues have the potential for more innovative and rigorous treatment that could lead to theoretical advances in the economics of information. Several examples of researchable issues that we believe could lead to such advances (e.g. the use of climate forecasts in pollution trading; natural disaster mitigation) are then discussed. Maximum benefits can be attained from such a research process that involves policy-makers and end-users, as well as other scientists. KEY WORDS: Economics · Climate applications · Decision theory · General equilibrium modeling · Game theory · Mechanism design theory Full text in pdf format PreviousNextExport citation RSS - Facebook - Tweet - linkedIn Cited by Published in CR Vol. 33, No. 1. Online publication date: December 21, 2006 Print ISSN: 0936-577X; Online ISSN: 1616-1572 Copyright © 2006 Inter-Research.