More conversions on global warming
More interesting perhaps is Tyler Cowen, who concedes that
It is by now pointless to deny that global warming is man-made to a considerable degree.
but is very pessimistic about our ability to do anything about it. (via Brad DeLong)
Since such pessimism is inversely correlated with faith in markets to achieve adjustments to changing prices, I find this quite surprising. Given a reasonable long-run elasticity of demand for C02 emissions, there’s every reason to suppose that very large reductions in emissions (say 60 per cent) could be achieved in the long run at a welfare cost of only a few percentage points of GDP.