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- W2031820188 abstract "The present state of research suggests that substantial reductions in greenhouse gas emissions could be achieved only by introducing some kind of greenhouse tax at very high levels. Such measures are unlikely to be realized for both economic and political reasons. We argue that a way out of this impasse can be found if a misleading assumption is corrected. This is the assumption that a system involving a multitude of rational actors operating on interdependent markets has only one possible equilibrium. The global economic system may, in fact, be able to attain several different equilibria. This leads to a peculiar kind of uncertainty, which so far has been studied mainly in quantum mechanics. The possibility of multiple equilibria implies that large reductions of carbon emissions could be feasible without massive longrun increases of fossil fuel prices. It also implies that a decision about a target for greenhouse gas emissions cannot be taken by means of economic optimization." @default.
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- W2031820188 date "1996-04-01" @default.
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- W2031820188 title "Climatic risks and rational actors" @default.
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- W2031820188 doi "https://doi.org/10.1016/0959-3780(95)00073-9" @default.
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