The economic case for the United States to remain in the Paris Agreement on climate change

Authors: Alex Bowen, London School of Economics and Political Sciences, Marshall Burke, Stanford University, Charles Donovan, Imperial College London, Kenneth Gillingham, Yale University, Frances C Moore, University of California, Robert Stavins, Harvard University, Gernot Wagner, New York University and Bob Ward, London School of Economics and Political Sciences

This policy brief examines the economic case for the United States to continue its participation in the Paris Agreement on climate change. It looks at four main themes: the economic impacts of climate change on the United States; the economic damage caused to the United States by other countries’ greenhouse gas emissions; the economic implications of the participation by the United States in the Paris Agreement; and global action to reduce economic damage from climate change in the United States and the rest of the world.

Headlines

• Staying in the Paris Agreement would result in significant economic benefits for the United States, its trading partners, and the world economy; withdrawing is a mistake.
• The emissions reduction targets that the United States set for itself in the Paris Agreement are now easier to achieve, for reasons including sharp falls in technology costs.
• The US Government should abandon its intention to withdraw from the Agreement, or promptly re-join after withdrawal is executed.
• A complementary report assessing the Trump Administration’s economic and policy arguments for withdrawing from the Paris Agreement can be downloaded here.