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Fix The Climate: Cutting Carbon Emissions Perspective, Roson

Professor Roberto Roson notes that Tol’s Assessment Paper is largely based on the FUND model and the results of a set of simulation exercises where a number of policy options are explored and assessed. Roson points out a series of limitations of the FUND model, as well as other points that limit the interpretation of the results. However, Roson concludes that when considering the simulation scenarios, “we could have got about the same findings with a different model”. He suggests that it is important to look beyond the simple assumptions used in a model like FUND, to consider more realistic settings in which incentives may play a key role.