Given the complexity of economic and environmental interactions underlying the climate change issue, no one model can address all of the questions surrounding a climate change economic analysis.

The review conducted by a distinguished international panel of scientist under the auspices of the intergovernmental panel on Climate Change has determined that "the balance of evidence suggests a discernible human influence on global climate". As economists, we believe that global climate change carries with it significant environmental, economic, social, and geopolitical risks, and that preventive steps are justified. Economic studies have found that there are many potential policies to reduce greenhouse gas emissions for which the total benefits outweigh the total costs. The most efficient approach to slowing climate change is through market based policies. In order for the world to achieve its climatic objectives at minimum cost, a cooperative approach among nations is required--such as an international emissions trading agreement.