I have just found the following statement amongst emails from December last year. Why didn’t the ‘leading economists’ mention the Kyoto Protocol? Is the Protocol too prescriptive and regulatory in nature? Would they endorse the upcoming meeting in Sydney on Wednesday of the Asia-Pacific Partnership on Clean Development and Climate?
Policy Solutions
United States Needs Incentive Based Policy to Reduce Carbon Emissions
________________________________________
Statement by leading economists
December 7, 2005
The signatories below are all senior economists with expertise in the application of economics to environmental policy. We believe it important that the United States should move to control greenhouse gas emissions. There is now no credible scientific doubt that the composition of Earth’s atmosphere is changing, that this change is driven in part by the emission of greenhouse gases from human activities, and that this change in atmospheric composition is changing Earth’s climate. The United States’ emissions of greenhouse gases constitute a major contribution to this process. The consequences of the climate change can be expected to be disruptive. Specific details of these effects at this stage remain uncertain. Nonetheless it is clear that any delay in the pace of change reduces the costs of adjustment. It serves as public insurance against more dramatic impacts and damages that can be expected when opportunities to adapt are limited.
It is important that greenhouse gas emissions be managed using an incentive based policy, such as a market-based approach to capping and reducing such emissions. This type of strategy provides clear incentives for changes in business practices and the development of new technologies. It assures that economic forces are directed to keeping the cost of reducing emissions as low as they can be. Many industrial nations have now adopted policies intended to limit greenhouse gases. As a result we can expect that the market for clean technologies will continue to grow over time. Adding industries in the United States to the other sources of these demands will help to reinforce this process.
George Akerlof, University of California at Berkeley
Kenneth J. Arrow, Stanford University
Edward Barbier, University of Wyoming
Robert T. Deacon, University of California at Santa Barbara
Walter P. Falcon, Stanford University
Hossein Farzin, University of California at Davis
Anthony C. Fisher, University of California at Berkeley
A. Myrick Freeman III, Bowdoin College
Lawrence H. Goulder, Stanford University
Theodore Groves, University of California at San Diego
Peter Hammond, Stanford University
Michael Hanemann, University of California at Berkeley
Geoffrey Heal, Columbia Business School
Gloria Helfand, University of Michigan
Larry S. Karp, University of California at Berkeley
Paul R. Kleindorfer, Wharton School of Business, University of Pennsylvania
Charles Kolstad, University of California at Santa Barbara
Roz Naylor, Stanford University
Jason F. Shogren, University of Wyoming
V. Kerry Smith, North Carolina State
David A. Starrett, Stanford University
Joe Stiglitz, Columbia University
David J. Vail, Bowdoin College
Jeffrey Vincent, University of California at San Diego
James E. Wilen, University of California at Davis

Jennifer Marohasy BSc PhD has worked in industry and government. She is currently researching a novel technique for long-range weather forecasting funded by the B. Macfie Family Foundation.