Economic analyses must take into account the role of the sea
The oceans absorb a large part of the greenhouse emissions in the global carbon cycle and thus prohibit even more rapid climate change. At the same time the absorption of CO₂ and climate change alter the puffer capacity of the oceans. The acidification of the oceans changes biological conditions with possibly substantial effects on the commercial utilization of ocean resources and ocean warming can lead to a release of methane from the oceans. The oceans therefore play an important role in the interaction between climate change and climate politics with economic activities and sustainable development. However, in economic analyses of carbon management up to now they have been mostly ignored.

The effects of anthropogenic greenhouse gas emissions cannot be correctly evaluated without explicit consideration of the oceans. External costs will be underestimated if the effects of ocean acidification are not internalised adequately. The result may be a cost benefit analysis resulting in an exaggeratedly high stabilisation level for the CO₂ content in the atmosphere. In addition the ocean essentially determines the risk content of each emission path, when reactions such as a change in thermohaline circulation or the destabilization of methane hydrates are included in the evaluation. The ocean has the potential to greatly influence the cost of preventative measures. The possibility of depositing CO₂ under the ocean floor would allow the use of fossile fuels with a limited effect on the climate.

An analysis of damages, costs and risks connected with climate change disregarding the role of the ocean in the global carbon cycle will inevitably lead to a misinterpretation.

Contact

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• Prof. Katrin Rehdanz

  Institution:

  Institut für Weltwirtschaft

  Phone:

  +49 431 8814-407

  E-mail:

  katrin.rehdanz@ifw-kiel.de

• Prof. Gernot Klepper

  Institution:

  Institut für Weltwirtschaft

  Phone:

  +49 431 8814-485

  E-mail:

  gernot.klepper@ifw-kiel.de

• Prof. Till Requate

  Institution:

  Institut für Volkswirtschaftslehre

  Phone:

  +49 431 880-4424

  E-mail:

  requate@wiso.uni-kiel.de