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Climate Shock: The Economic Consequences of a Hotter Planet Hardcover – February 22, 2015

4.2 4.2 out of 5 stars 145 ratings

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How knowing the extreme risks of climate change can help us prepare for an uncertain future

If you had a 10 percent chance of having a fatal car accident, you'd take necessary precautions. If your finances had a 10 percent chance of suffering a severe loss, you'd reevaluate your assets. So if we know the world is warming and there's a 10 percent chance this might eventually lead to a catastrophe beyond anything we could imagine, why aren't we doing more about climate change right now? We insure our lives against an uncertain future--why not our planet?

In
Climate Shock, Gernot Wagner and Martin Weitzman explore in lively, clear terms the likely repercussions of a hotter planet, drawing on and expanding from work previously unavailable to general audiences. They show that the longer we wait to act, the more likely an extreme event will happen. A city might go underwater. A rogue nation might shoot particles into the Earth's atmosphere, geoengineering cooler temperatures. Zeroing in on the unknown extreme risks that may yet dwarf all else, the authors look at how economic forces that make sensible climate policies difficult to enact, make radical would-be fixes like geoengineering all the more probable. What we know about climate change is alarming enough. What we don't know about the extreme risks could be far more dangerous. Wagner and Weitzman help readers understand that we need to think about climate change in the same way that we think about insurance--as a risk management problem, only here on a global scale.

Demonstrating that climate change can and should be dealt with--and what could happen if we don't do so--
Climate Shock tackles the defining environmental and public policy issue of our time.

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Editorial Reviews

Review

"2016 Outstanding Book of the Year “Most Likely to Save the Planet,” Independent Publisher Book Awards"

"A Financial Times Summer Books 2015 selection"

"One of Financial Times (FT.com) Best Books in Economics 2015, chosen by Martin Wolf"

"One of the Globalist’s Top Books of 2015"

"Longlisted for the Financial Times and McKinsey Business Book of the Year 2015"

"[
Climate Shock] is a witty, far-ranging, and literate set of observations…[I]t is always informed by a deep understanding of the complexities of economics and particularly the difficulties of reaching international environmental agreements."---William D. Nordhaus, New York Review of Books

"'Top 10: Business & Economics' for Spring 2015." ―
Publishers Weekly

"Economists Gernot Wagner and Martin Weitzman deliver a high-voltage shock in their analysis of the costs of climate change." ―
Nature

"[U]seful for policy workers in helping shape dollars-and-cents arguments about the environment and global climate." ―
Kirkus

"[A]n impressive (and concise) book."
---Diane Coyle, Enlightened Economist

"This informative, convincing, and easily read book offers general audiences the basic case for global climate mitigation."
---Ian Parry, Finance & Development

"This book represents a synthesis of research and offers a clear-headed look at what must be done." ―
Toronto Star

"
Climate Shock is refreshing in many ways: it starts with a pop quiz, reveals the script of a (possible) new James Bond film and gives you the solution to climate change on page 23. That should be enough to entice a broad readership. However, the book's true value lies elsewhere, in the authors' ability to present a complex and multifaceted topic in plain, simple terms. They challenge assumptions and don't shy away from a clear call for action."---Swenja Surminski, Times Higher Education

"For the intelligent lay reader wanting a lively, lucid assessment of the economic consequences of global warming. . . . [W]ell worth reading."
---Pilita Clark, Financial Times

"[
Climate Shock] combines sophisticated analysis with a breezy, informal style." ― Foreign Affairs

"[A] sobering wake-up call . . . In my mind, this book should be required reading for any policymaker. The world might actually make some real progress, then."
---Tibi Puiu, ZME Science

"In Wagner and Weitzman's new book, they present a well written analysis of the tradeoffs we collectively face as we unintentionally unleash climate change. They argue that a risk averse person or nation should buy insurance to protect itself--especially when the losses from climate change are ambiguous and fat tail risk could be huge. The book is well argued and I highly recommend it. The economic approach to discussing climate change offers a new prospective relative to the issues that climate scientists focus on."
---Matthew E. Kahn, Green Economics

"[A] welcome new addition to the growing library of depressing but important books about climate change."
---Tom Watson, Real Change News

"[
Climate Shock] delivers a brief but thorough look at the changing climate from economists' perspective, comparing global warming with other risks and dangers that humanity faces. . . . [T]he book does serve as a call to arms for business owners and leaders, economists, and policymakers who have been searching for a purely rational, finance-focused take on climate change."---Katie Fehrenbacher, Strategy + Business

"[A] punchy new book."
---Martin Wolf, Financial Times

"[A] terrific new book."
---Martin Sandbu, Financial Times

"
Climate Shock should shift our narrative on climate change. . . . Wagner and Weitzman have some policy recommendations, including electricity-grid reform and higher gas taxes. But the real power of their book is its explanation of the right way to think about climate change. Do we really want to take an 11 percent gamble with the planet?"---Peter Orszag, Bloomberg View

"
Climate Shock is an authoritative call to arms for tackling the defining environmental and public policy issue of our time." ― LSE

"[A] lively and thought-provoking book." ―
Financial Times

"
Climate Shock could have reasonably been called But Will the People Notice? It's a layperson's survey of climate economics, a field that includes cost-benefit analysis and other economic research on climate change impacts and climate change policies. . . . Beyond just being mathematically accessible--an accomplishment in itself--Climate Shock is an unconventional book that takes risks in an effort to connect with audiences who might otherwise turn away."---Yoram Bauman, Reports of the National Center for Science Education

"Overflowing with analytical insights and simple suggestions to transform the way we live and manage ourselves." ―
Deccan Herald

"A brilliant analysis of the fragility of our debt-fuelled economies."
---Martin Wolf, Financial Times

"Economists Gernot Wagner and Martin Weitzman deliver a stinging slap to the reluctant or somnolent negotiator."
---Barbara Kiser, Nature.com's A View from the Bridge blog

"A great book on global warming risk and economics."
---Andrew Revkin, NYTimes.com's, Dot Earth

"
Climate Shock: The Economic Consequences of a Hotter Planet by Gernot Wagner and Martin Weitzman comes into its own here, emphasizing the centrality of uncertainty and the role of climate policy as planetary risk management. The authors are very good at arguing that uncertainty is not an excuse for doing nothing or for a wait-and-see policy."---Geoff Heal, Journal of Economic Literature

"
Climate Shock: The Economic Consequences of a Hotter Planet does a great job of setting out the case for action on climate."---Geoffrey Heal, Journal of Economic Literature

"Gernot Wagner and Martin Weitzman explore in lively, clear terms the likely repercussions of a hotter planet . . .
Climate Shock tackles the defining environmental and public policy issue of our time." ― PolitCommerce

Review

"A remarkable book on climate change, Climate Shock is deeply insightful, challenging, eye-opening, thought-provoking, and sheer fun to read. It will help you to think clearly and incisively about one of the most important issues of our generation."―Jeffrey Sachs, author of The Price of Civilization

"
Climate Shock is a brilliant, clear, rigorous, and to-the-point account of the problem of climate change and what we can and should do about it. The book's approach to risk―which factors in deep uncertainties―is vastly more sophisticated than the standard methods. An outstanding book."―Nassim Nicholas Taleb, author of The Black Swan and Antifragile

"The recent financial crisis was largely the result of an economy set up to privatize benefits and socialize costs. The same holds true for the climate crisis. Let's avoid doing to the planet what we did to the economy, and let's begin by taking the economics of climate change seriously.
Climate Shock shows conclusively how bad the problem truly is and how we can fix it."―Van Jones, founder and president of Green for All and author of The Green Collar Economy

"Think climate change is a low-priority problem? Something to put off while we deal with more immediate threats? Then
Climate Shock will open your eyes. Leading economists Wagner and Weitzman explain, in simple, understandable terms, why we face an existential threat in human-caused climate change. The authors lay out the case for taking out a planetary insurance policy, without delay, in the form of market mechanisms aimed at keeping carbon emissions below dangerous levels."―Michael E. Mann, author of The Hockey Stick and the Climate Wars

"Cutting through the fog of excuses, obfuscation, and misguided solutions,
Climate Shock takes a clear look at the risks and dangers of inaction on climate change. Wagner and Weitzman show the urgent need for fact-based, rational analysis of big environmental challenges so that we can move forward in the quickest and most practical way possible."―Mark R. Tercek, president and CEO of the Nature Conservancy and author of Nature's Fortune

"Wagner and Weitzman's
Climate Shock explores two of the most alarming risks from climate change: unpredictable catastrophes and the all-too-foreseeable human tampering with the environment. They explain how the same political barriers to addressing the problem will leave nations racing to deflect the damage through geoengineering. For anyone interested in the new risk landscape of our changing climate, Climate Shock is a compelling and highly recommended read."―Ian Bremmer, president of the Eurasia Group

"In this clear and engaging exegesis on the risks from global warming, Wagner and Weitzman show that our options for avoiding calamity rapidly narrow toward a few unappetizing possibilities if we don't slash carbon emissions comprehensively and fast."
―Michael Oppenheimer, Princeton University

"
Climate Shock fascinates, infuriates, motivates. It's an illuminating guidebook to how the climate debate will unfold over the coming decade. But first and foremost, it's a call to action. Now."―Fred Krupp, president of the Environmental Defense Fund

"
Climate Shock is a clear, well-argued introduction to the economics of climate policy."―David Keith, author of A Case for Climate Engineering

"Do you want to be challenged and stretched? Climate Shock gives broad perspectives and logical tools that will let you think through the threat of climate change on the level of the best minds on this planet."
―Peter C. Goldmark Jr., former president of the Rockefeller Foundation and former CEO of the International Herald Tribune

"What happens when one of the world's leading economists who thinks seriously about global climate change gets together with one of the world's top writers about matters environmental and economic?
Climate Shock. From the first page to the last, this important, new book is both exceptionally interesting and surprisingly fun. Now, that's shocking!"―Robert N. Stavins, Harvard University

"
Climate Shock demolishes the argument made by climate change skeptics for business as usual."―Ted Steinberg, author of Gotham Unbound

"I cannot think of a better team than Wagner and Weitzman to communicate the risks of inaction on climate change. Their unbiased and informative book
Climate Shock dives right into the complexities of the issues and explains them clearly. It provides new and invigorating context for readers."―Juan Moreno-Cruz, Georgia Institute of Technology

"
Climate Shock looks at the key issues in climate change and climate change policy and recommends what actions readers can take to help prevent devastating outcomes. Wagner and Weitzman don't hold back from explaining complicated topics and their arguments are backed by references from the latest scientific and economic literature. This is by far the most engaging presentation of this topic that I have read."―Kenneth Gillingham, Yale University

Product details

  • Publisher ‏ : ‎ Princeton University Press; First Edition (February 22, 2015)
  • Language ‏ : ‎ English
  • Hardcover ‏ : ‎ 264 pages
  • ISBN-10 ‏ : ‎ 0691159475
  • ISBN-13 ‏ : ‎ 978-0691159478
  • Item Weight ‏ : ‎ 1 pounds
  • Dimensions ‏ : ‎ 5.8 x 0.8 x 8.8 inches
  • Customer Reviews:
    4.2 4.2 out of 5 stars 145 ratings

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4.2 out of 5 stars
145 global ratings

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Customers say

Customers find the book informative and well-researched. They describe it as an enjoyable, easy read that explains climate change effectively in clear and understandable language. The book provides a realistic account of weather and introduces economic concepts like carbon pricing to engage readers in its proposals.

AI-generated from the text of customer reviews

11 customers mention "Information quality"11 positive0 negative

Customers find the book informative and well-researched. They describe it as an accessible primer for discussion with interesting topics and solid explanations. The book provides a disciplined approach to addressing climate change.

"...a perspective on the problem of climate change that is new in non-academic literature, and I would highly recommend it, especially to the reader who..." Read more

"I found this book very helpful in suggesting a disciplined approach to addressing how best to respond to, or at least, assess abrupt climate change...." Read more

"This book was very informative in the way it describes the potential outcomes caused by global warming and climate change in general...." Read more

"This is an informed accessible book written by two specialists in the field, one who will likely win the Economics Prize in memory of Alfred Nobel..." Read more

9 customers mention "Readability"9 positive0 negative

Customers find the book well-written and instructive. They say it explains effectively how to do something.

"...to think about it that way, and Climate Shock explains, clearly and effectively, how to do it. Adam Sobel, Columbia University..." Read more

"...This proved to be a instructive and most enjoyable read." Read more

"great book!" Read more

"A great writer who tells it like it is, reminding us that we should be more scared of what we know we don't know, than what we do know!..." Read more

8 customers mention "Readable"8 positive0 negative

Customers find the book readable and easy to understand. They appreciate the clear explanations and concise discussion of the problem. The authors offer hope and provide a succinct discussion of what needs to be done.

"...At the same time, the authors offer hope, making it clear that if we can manage to change course and take serious action on climate sooner rather..." Read more

"Both well-researched and very readable, Climate Shock reframes the discussion on climate change from if climate change poses a threat, to the..." Read more

"...Wagner and Weitzman offer a good, to-the-point summary of the problem and, even more, provide a clear framing why we need to act: the risk of not..." Read more

"...It provides a first rate explanation of the difference between feel good (and mostly meaningless) action and viable attemps to solve the mother of..." Read more

7 customers mention "Climate change"7 positive0 negative

Customers find the book provides a realistic account of climate change. It includes facts about the science behind it, calculations behind the economics of climate change, and a discussion of capitalism's impact on climate change.

"Both well-researched and very readable, Climate Shock reframes the discussion on climate change from if climate change poses a threat, to the..." Read more

"...approach to addressing how best to respond to, or at least, assess abrupt climate change...." Read more

"...is the best framing of climate policy, ever." Read more

"This is a book about climate change, including facts about the science behind the problem, but more significantly, calculations behind the economics..." Read more

3 customers mention "Economics"3 positive0 negative

Customers find the book's economics engaging. They appreciate the basic climate science and economics presented to support its proposals. The book outlines an economic argument for carbon pricing and political behavior and market incentives.

"Climate Shock presents an economic argument to price carbon...." Read more

"...do a darned good job of giving us just enough Climate Science and Economics basics to engage us in their proposals...." Read more

"...problem, this book embraces the roles of political behavior and market incentives." Read more

Top reviews from the United States

  • Reviewed in the United States on May 6, 2015
    The authors look unflinchingly at the realities of human-induced climate change and consider the choices it presents us with as a species. They consider what strategies might have the best chance of working, as well as what has to change, politically and otherwise, for those strategies to be implemented. Besides mitigation (reducing greenhouse gases) and adaptation (dealing with it), they consider geoengineering – acknowledging that it’s almost certainly a very bad idea, while explaining why it may happen anyway, and thus has to be thought about. They are economists, and argue as such, but communicate in nontechnical, eminently readable prose. They also – consciously and deliberately - avoid some of the common assumptions that often cause their field to chronically undervalue the environment.

    Most importantly, Wagner and Weitzman systematically destroy the notion that the scientific uncertainties in climate change projections are an excuse for inaction. They consider climate as a risk assessment problem, and demonstrate that the uncertainties should lead us to see the situation as more dire, not less, because extremely bad outcomes (far worse than the most likely ones), though unlikely, are possible enough that we have to consider them. At the same time, the authors offer hope, making it clear that if we can manage to change course and take serious action on climate sooner rather than later, we can greatly improve our chances of avoiding the worst.

    The climate problem can seem too large to grasp, too overwhelming to think about in practical terms. But we need to think about it that way, and Climate Shock explains, clearly and effectively, how to do it.

    Adam Sobel, Columbia University
    adamsobel.org
    2 people found this helpful
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  • Reviewed in the United States on August 17, 2015
    Both well-researched and very readable, Climate Shock reframes the discussion on climate change from if climate change poses a threat, to the implications of uncertainty regarding global temperature rise. The book walks the reader through climate change as a risk-management problem, showing the dire consequences of inaction and making an urgent argument for action from an economic perspective. Bottom line—we wouldn’t take a 10 percent gamble on an asset or on our own lives, why would we do so with the planet? Climate Shock takes a perspective on the problem of climate change that is new in non-academic literature, and I would highly recommend it, especially to the reader who is already familiar with climate change.
    5 people found this helpful
    Report
  • Reviewed in the United States on August 13, 2020
    If you are going to read only one book on climate change, I recommend this one. Or, if you are looking for an good, easy read on a very important current affair, I can't think of a better book. At the start of 2020, I decided to dig into climate change and learn as much as I could (I've been hearing about it for 40 years). As an engineer and business person, I started my learning in a typical "problem solving" approach: I first wanted to understand the physics, the context of the problem, the evidence of human-driven climate impact, etc. I've read about a dozen books this year and I've scoured on-line resources and academic papers. I've looking at arguments that refute human role in climate change (so called "deniers" and skeptic). In the end, the issue is pretty clear but the way we move forward is not. Wagner and Weitzman offer a good, to-the-point summary of the problem and, even more, provide a clear framing why we need to act: the risk of not acting is simply not worth taking.
    2 people found this helpful
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  • Reviewed in the United States on November 28, 2015
    Climate Shock presents an economic argument to price carbon. That’s in order to leverage market forces to reduce the amount of greenhouse gasses being trapped on earth.

    Given the scientific evidence of this catastrophic threat and what we already understand about economics, a convincing argument to stop subsidizing carbon emissions and to instead price carbon should easily be available. Yet here we enjoy only a modestly compelling argument, I think for two primary reasons.

    The book lacks a sufficient amount of scientific evidence that’s available in the peer-reviewed literate that broadly describes the implications. Here we have two economists who could have really used a climate scientist as a co-author to fully flesh-out all the negative implications of a warming earth. The authors are cognizant of the science that describes global warming. Instead they under-summarize the catastrophic implications as reported by climate scientists. The authors’ mundane ignorance regarding the degree of catastrophic implications undercuts their own case to price carbon.

    I think the second flaw is an inadequate discussion of externalities. This is especially important given the ignorance of the American public regarding the concept and the fact the public doesn’t think in terms of marginal implications like economists laudably do. So while the authors do introduce the concept of externalities, I don’t think they sufficiently illustrate the concept so readers have a sufficient appreciation of this concept and its importance when it comes to our not pricing carbon at a price of $40 or more per ton but instead subsidizing it by at least $15/ton. Yes, we pay carbon emitters to damage our world now and in the future.

    The book is short, 156 pages total for the Preface, Chapters, and Epilogue. It’s also a light read given the lack of scientific evidence reported to support the conclusions of the authors. So a longer book with more meat and therefore a more convincing argument would have been more appreciated by this reader.

    What’s particularly ironic about this lack of meat is the sub-title, “The Economic Consequences of a Hotter Planet”. It’s the sub-title that drew me to this book, and yet the consequences as understood by scientists are only trivially reported. Instead the main point of the book is to price carbon so we reduce the negative implications.
    5 people found this helpful
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  • Reviewed in the United States on November 16, 2023
    Satisfied in terms of the above criteria.

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  • Kindle Customer
    5.0 out of 5 stars informative, without pushing any agenda onto the reader
    Reviewed in Germany on August 15, 2024
    ...and very well written. Filled in a lot of blanks for me and explained the issue and all it's implications in simple terms. I truly appreciated how the authors emphasizeed how difficult it is to predict the future but at the same time once again confirmed that the time to act is now.
  • JAY
    4.0 out of 5 stars Shocked by facts
    Reviewed in India on October 22, 2015
    An eye opener tales of how humans are destroying the very planet that gives so much! Which nation is doing a lot and what more do we need to prevent the earth from getting heated to the extent that camels are again seen at artic! The book will wake you up to hard facts of global warming.
  • Satisfied Consumer
    4.0 out of 5 stars Four Stars
    Reviewed in Canada on December 7, 2016
    Good analysis!
  • Barkersoldbean
    2.0 out of 5 stars What was really lacking was a "big idea".
    Reviewed in the United Kingdom on June 7, 2015
    This was a truly disappointing book. I was expecting something that would expand my knowledge and perspective but all I got was a re-hash of current issues and a preoccupation with exploring the "long tail" of statistical reasoning ("yes but what if the stats are wrong and indeed the ∆T is +6C instead of +2C") which kept reappearing like a bad smell and ended with this reader skipping pages to avoid the tiresome repetition.

    What was really lacking was a "big idea".
  • Wauber
    1.0 out of 5 stars Überflüssige Pflichtübung
    Reviewed in Germany on April 10, 2015
    Daß Propheten der Klimakatastrophe eine schwarze Zukunft sehen, wenn nicht alles geändert wird, ist nichts Neues. Neue Aspekte aber liefert das Autorenpaar hier nicht, selbst in ihrem Rahmen gedacht, der von "wissenschaftlicher Sicherheit" ausgeht, und das mit Rationalismus und Gewißheit verwechselt. Es läuft auf ein Wiederbeten der eh längst überall gehörten Aufforderungen, konzentriert auf eine CO2-Steuer. Die Annahme selbst aber, auf denen dieser Alarmismus beruht, sind mehr als fragwürdig. Da muß man kein Klimaskeptiker sein, sondern einfach seinen Verstand benutzen. Auch stilistisch - was bei Wagner's erstem Buch für die inhaltischen Schwächen ein wenig entschädigte - wirkt das Buch wie eine Pflichtübung, mit der der eine vom Namen profitieren wollte, und dabei willfährig dem "großen Namen" gegenüber war, der andere einfach froh war, daß er wieder etwas "to publish" hatte, ohne die Arbeit zu machen.

    Ich frage mich halt sehr, ob das nicht die Generation sein wird, die später, wenn der ganze Klimaunsinn - der alles andere als wissenschaftlich "bewiesen" ist - einmal als Hoax der Jahrhundertwende da steht, sagt: ja, wir haben das ja nicht gewußt, die Wissenschaft hat ja gesagt!? Und dann wieder - nur mit veränderten Paradigmen - mit ihren Titeln und Zeugnissen obenaufschwimmen.

    Man wendet sich bereits jetzt mit Grausen von solchen Leuten.

    Schwach, sehr schwach das Buch.