Uncertainty is inherent in the analysis of global warming issues.
Not only is there considerable scientific uncertainty about the magnitude of global warming, but even if that problem were resolved, there is uncertainty about what monetary value to assign to the costs and benefits of various policies to reduce global warming. And yet the influence of uncertainty in policymakers' decisions is ignored in most studies of the issue. Baranzini, Chesney, and Morisset try to explicitly incorporate the effect of uncertainty on the choice of global warming abatement policies. First, they assess whether it is optimal to implement Cline's strategy of limiting global warming today, or whether it should be postponed, and for how long. Then, they identify the optimal policy to be implemented today for different levels of uncertainty about the costs and benefits of policies to reduce global warming.