Yesterday, I attended a seminar of Dr. Frank Ackerman, co-program director of Global Development and Environment Insittute (GDAE) at Tufts university. GDAE is well known in heterodox economists and ecological economists. It publishes many books and articles of new perspectives. GDAE may be one of dream job of many heterodox economists.
Dr. Ackerman's presentation title was "Can we afford global warming?" He used expression, climate economics during his presentation. He used a metaphor of insurance for climate change policy. People buy a insurance although it never pass the cost-benefit test. Climate policy should be considered as a insurance against catastrophic events which have low probability. It is all about precautaionary principle.
Makes very sense! But question is "can we buy the insurance?" He answered that the insurance is not that costly. There are already diverse and affordable solutions available, but problem is political will. He said that government should invest more in R&D for climate change. This view, tech-optimistic, is similar to Martin Hoffert. My question to Dr. Ackerman will be where we can optimally allocate the insurance money.