@Risk

When asked if anthropogenic climate change creates “significant risks to important sectors in the US and global economy,” 84% of expert economists respondents agree or strongly agree, 7.6% remained neutral, and 5.6% disagree or strongly disagree.

A survey of 144 top economists found that 84 percent believe that the effects of global warming will create significant risks to important sectors of the United States and global economies.

Nearly all (98 percent) agree that a price on carbon (through a tax or cap-and-trade system) will increase incentives for efficiency and innovation.

The survey was conducted by the Institute for Policy Integrity at New York University School of Law, and the results were released last week in a report called “Economists and Climate Change: Consensus and Open Questions.”

Here are a few additional findings from the survey:

• More than 94 percent of the economists polled agreed that the United States should commit to emissions reductions through a global treaty.

• 57 percent believe that the United States should commit to reductions “regardless of the actions other countries take.”

• By contrast, two percent feel the United States should not reduce emissions under any circumstances.

• 92 percent preferred or strongly preferred “market-based mechanisms, such as a carbon tax or cap-and-trade system” over command-and-control regulation to reduce GHG emissions.

• 86 percent said that climate change will negatively affect the U.S. agricultural sector.

• 75 percent agreed or strongly agreed that “uncertainty associated with the environmental and economic effects of greenhouse gas emissions increase the value of emission controls, assuming some level of risk-aversion.”

“Reducing our greenhouse gas emissions is an insurance policy against what economists fear are tremendous risks to America’s long-term prosperity.  By limiting our carbon emissions soon, we can avoid serious damage to our economy,” Michael Livermore, the Institute for Policy Integrity’s executive director said.

I’ve posted before about the importance of climate change adaptation, and it’s becoming increasingly clear that successful companies will start recognizing challenges like these today, so that they can begin developing adaptive, integrated strategies to manage the risks and capitalize on available opportunities.

The full IPI report is available here.