Matt Kahn:
… two friends of mine have released a new book "Climate Shock". In Wagner and Weitzman's new book, they present a well written analysis of the tradeoffs we collectively face as we unintentionally unleash climate change. They argue that a risk averse person or nation should buy insurance to protect itself — especially when the losses from climate change are ambiguous and fat tail risk could be huge. The book is well argued and I highly recommend it. The economic approach to discussing climate change offers a new prospective relative to the issues that climate scientists focus on.
What is missing in their book is a reasoned discussion of the economics of climate change adaptation. They devote a chapter to geo-engineering but to my surprise, they are not willing to engage on the topic of adaptation. …
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