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Deep thought of the day

Posted by David Roberts at 10:12 AM on 25 Feb 2008

Read more about: economy | Africa

When tallying up the costs and benefits of climate change (and mitigating climate change), economists generally use GDP figures.

If the entire continent of Africa was wiped out, that would shave about 2-4% off of global GDP. Would that count as a large cost or a small one?

GDP and decision-making

What this highlights is how cost-benefit analysis is one tool for evaluating the relative appeal of different options. It is not, in itself, an adequate mechanism for decisions. Other sorts of moral and practical considerations must still be taken into account.

a sibilant intake of breath
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