In a blog post a while back, I pointed out that William Nordhaus's work on the economics of global warming demonstrated a serious problem with policy arguments based on externalities—the risk, in dealing with something as uncertain as costs and benefits over the next century, that the calculation of externalities will be biased in the direction that produces the result the person doing the calculation wants.
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More on Nordhaus and Global Warming
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In a blog post a while back, I pointed out that William Nordhaus's work on the economics of global warming demonstrated a serious problem with policy arguments based on externalities—the risk, in dealing with something as uncertain as costs and benefits over the next century, that the calculation of externalities will be biased in the direction that produces the result the person doing the calculation wants.