In regulating carbon pollution, the price put on it matters
Environmental economist and UCLA Professor Matt Kahn discussed the social cost of climate change on American Public Media's Marketplace radio program.
The White House says its carbon damage estimate is the mid-range of estimates. But UCLA's Matthew Kahn thinks it may be too high. He says when seas rise in the future, many models assume coastal houses will be doomed. But don't forget, he says, homeowners adapt.
"When we anticipate a new threat, rational households and firms will move to higher ground," Kahn says. "Those in currently at-risk areas will invest in stilts or other devices, hard sea walls to protect themselves. Or they will retreat."
To read the full story from Marketplace correspondent Scott Tong click here.
Published: Tuesday, June 25, 2013