Ross McKitrick - Breaking the Climate Change Stalemate

The video features a discussion with Ross, an economist at the University of Guelph, about his grant on state-contingent environmental policy. It explores the challenges of applying traditional economic models to global warming, the use of integrated assessment models, and the debate over climate sensitivity. Ross proposes a novel approach of linking carbon tax rates to temperature changes, emphasizing market-based forecasting. The conversation highlights interdisciplinary collaboration between economists and climatologists and discusses educational opportunities for students in environmental economics.

What is the main challenge with applying traditional economic tools to global warming?

• Emissions affect the climate state, not directly causing damages.

• Emissions directly cause damages.

• The pricing rule is well-defined.

• The damage function is straightforward.

What do integrated assessment models typically combine?

• Only climate models.

• Simple climate and economy models.

• Only economy models.

• Complex climate and economy models.

What is the proposed new model for setting carbon tax rates based on?

• Economic growth rates.

• Political agreements.

• Average atmospheric temperatures.

• Predicted emissions levels.

How does the new model affect market behavior?

• It creates a market for accurate temperature forecasts.

• It sets fixed tax rates.

• It relies solely on government predictions.

• It eliminates the need for forecasts.

What is a key benefit of interdisciplinary collaboration between economists and climatologists?

• Economists learn new statistical methods.

• Climatologists develop new economic theories.

• Exchange of empirical methods and data analysis techniques.

• Economists focus solely on climate models.

What is a common surprise for economists when reviewing climatology papers?

• Lack of empirical data.

• Complex economic models.

• Advanced statistical methods.

• Elementary statistical methods.

What tools do economists bring to climatology research?

• Political negotiation skills.

• Advanced econometric methods.

• Basic statistical methods.

• Climate modeling techniques.

What is a focus area for graduate students in the discussed PhD program?

• Historical economic theories.

• Advanced climatology.

• Natural resources and environmental economics.

• Political science.

Why is choosing a state variable for climate policy challenging?

• All datasets are identical.

• Different measurement methods affect policy outcomes.

• There is only one way to measure temperature.

• State variables are irrelevant to policy.

What is the role of econometrics in the discussed research project?

• To create political agreements.

• To evaluate temperature datasets.

• To develop new climate models.

• To eliminate the need for data.