Zora deals in NFTs, or non-fungible tokens: these are cryptographically secured assets on the Ethereum blockchain, which can take the form of digital art, music, or other collectibles. They’ve become a buzzy investment in the past few months: Grimes just sold a collection for $6 million, and digital artist Beeple made a similarly insane amount of money on NFTs back in December.
Designing policy for climate change requires analyses which integrate the interrelationship between the economy and environment, including: the immense risks and impacts on distribution across and within generations; the many failures, limitations or absences of key markets; and the limitations on government, both in offsetting these failures and distributional impacts.
Much of the standard economic modelling, including Integrated Assessment Models, does not embody key aspects of these essentials.
We identify fundamental flaws in both the descriptive and normative methodologies commonly used to assess climate policy, showing systematic biases, with costs of climate action overestimated and benefits underestimated. We provide an alternative methodology by which the social cost of carbon may be calculated, one which embraces the essential elements we have identified.