William Nordhaus: 2 ideas worth knowing

2 ideas from William Nordhaus, each explained in a minute and credited to the original work. Free on Savvy.

One economist built a model to price climate change into the economy
William Nordhaus spent decades building models -- culminating in the DICE model -- that link economic growth to the cost of carbon emissions, letting economists calculate an 'optim…
— William Nordhaus, The Climate Casino: Risk, Uncertainty, and Economics for a Warming World
Insuring something against a loss can quietly make that loss more likely
Once a person or company is protected from the consequences of a risk, they tend to behave more recklessly than they would if they bore the full cost themselves. Economists call th…
— Paul Samuelson, William Nordhaus, Economics

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