As economists, we believe that global climate change carries with it significant environmental, economic, social, and geopolitical risks, and that preventive steps are justified.
For the United States in particular, sound economic analysis shows that there are policy options that would slow climate change without harming American living standards, and that these measures may in fact improve U.S. productivity in the long run.
In order for the world to achieve its climatic objectives at minimum cost, a cooperative approach among nations is required – such as an international emissions trading agreement.
The United States and other nations can most efficiently implement their climate policies through market mechanisms, such as carbon taxes or the auction of emissions permits.
The revenues generated from such policies can effectively be used to reduce the deficit or to lower existing taxes.The Economists' Statement on Climate Change was organized by Redefining Progress,[2][3] an environmental economics think tank founded in 1993 by Ted Halstead,[5] who served as its first executive director.