
Stanley Greene/NOOR/Redux
Greenland, photographed from a boat navigating the melt where dog sleds used to travel across the ice, October 2009
We prefer the news about solutions to challenging problems. Preferably positive news. Preferably innovations that invoke smiles. Sometimes, dismal is the only way to move forward. Thanks to the New York Review of Books, and Paul Krugman for this review:
Forty years ago a brilliant young Yale economist named William Nordhaus published a landmark paper, “The Allocation of Energy Resources,” that opened new frontiers in economic analysis.1 Nordhaus argued that to think clearly about the economics of exhaustible resources like oil and coal, it was necessary to look far into the future, to assess their value as they become more scarce—and that this look into the future necessarily involved considering not just available resources and expected future economic growth, but likely future technologies as well. Moreover, he developed a method for incorporating all of this information—resource estimates, long-run economic forecasts, and engineers’ best guesses about the costs of future technologies—into a quantitative model of energy prices over the long term. Continue reading →