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Diane Coyle

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Real and nominal measurements

The economics of climate change

Economic analysis is important in exploring the causes of climate change, and in devising policies to combat it. For more explanation, see the article by John Sloman on pages 2–5 of this issue of ECONOMIC REVIEW

1 There is general agreement among scientists that the global climate is getting warmer.

2 An important contributing factor is the existence of various market failures, in particular the presence of externalities, but also in the form of information asymmetry and distribution.

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Diane Coyle

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Real and nominal measurements

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