The Environmental Costs of Greenhouse Gas Emissions

  • Michael Hoel
  • Ivar Isaksen
Part of the Annals of the International Society of Dynamic Games book series (AISDG, volume 2)


An efficient, comprehensive climate policy should balance the cost of reducing emissions of each greenhouse gas (GHG) against the environmental costs of the emissions of the gas. In this paper we show how these environmental costs may be calculated. This is first done for the “traditional” case in which one at any time is only concerned about the state of the climate. We next consider a more general environmental cost function, for which it is assumed that the rate of climate change is more important for the environment and the economy than the state of the climate. Finally, a numerical calculation of marginal costs of GHG emissions for both types of environmental cost functions is presented.


Marginal Cost Climate Policy Global Warming Potential Carbon Taxis Environmental Cost 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer Science+Business Media New York 1995

Authors and Affiliations

  • Michael Hoel
    • 1
    • 2
  • Ivar Isaksen
    • 3
    • 4
  1. 1.Department of EconomicsUniversity of OsloNorway
  2. 2.SNF (Center for Research in Economics and Business Administration)OsloNorway
  3. 3.CICERO (Center for Climate and Energy Research, Oslo, Norway)OsloNorway
  4. 4.Department of GeophysicsUniversity of OsloNorway

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