Economic reasoning fails to address intergenerational climate change impact.
The article argues that economic reasoning about climate change is problematic due to the intergenerational aspect. Future generations cannot participate in economic exchanges, making economic analysis irrelevant for climate policy. Trading in greenhouse gas allowances may not reflect true costs but rather beliefs about enforcement. A perfectly efficient market cannot address the needs of future generations for a stable climate. Therefore, we must rely on other reasons to justify responding to climate change.