The evidence of a general trend of global warming is overwhelming. It now seems beyond reasonable doubt that increases in greenhouse gas emissions resulting from human activities have led to an increase in the global temperature anomaly, which is, in turn, leading to changes and, indeed, instability in the climate (see Dijkstra & Dixon 2010).

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The Stern Review (Stern 2007) presented an economic argument in favour of action to limit the potential 5–20% loss of global gross domestic product (GDP) each year that it predicts if climate change were to proceed unabated. An expenditure of 1% of...

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