A fix for the climate

VoxEU.org: The economic benefits and costs of mitigating global warming are widely debated. This column shows that based on current scientific knowledge and standard economic principles, a simple formula for the marginal damage of emissions can be constructed. The formula considerably strengthens the case for carbon taxation versus caps, allows straightforward calculation of the ‘global carbon debt’ rich nations owe to poor nations and future generations, and offers a yardstick for carbon capture and storage investments.