Abstract
Scientifically, it is difficult to predict the relationship between global temperature and greenhouse gas (GHG) concentrations. The climate system contains many processes that will change if warming occurs. Critical processes include heat transfer by winds and tides, the hydrological cycle involving evaporation, precipitation, runoff and groundwater and the formation of clouds, snow, and ice, all of which display enormous natural variability. The equipment and infrastructure for energy supply and use are designed with long lifetimes, and the premature turnover of capital stock involves significant costs. Economic benefits occur if capital stock is replaced with more efficient equipment in step with its normal replacement cycle. Likewise, if opportunities to reduce future emissions are taken in a timely manner, they should be less costly.
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