Frank Ackerman

Director, Climate Economics Group


Somerville, MA
frank.ackerman@sei-us.org
skype: frank.ackerman
+1 (617) 627-6957

Frank Ackerman is an economist specializing in climate change. A prominent critic of conventional economic approaches to climate policy and the abuses of cost-benefit analysis, he has written extensively for academic, policy and general audiences and has directed studies for clients ranging from Greenpeace to the European Parliament and U.S. federal and state agencies.

Ackerman's most recent book, Can We Afford the Future? Economics for a Warming World (Zed Books, 2009), reframes the economics of climate change in terms of insuring the planet against worst-case scenarios, addressing the needs of future generations, and accepting the challenge of global equity raised by the climate crisis. His other recent projects include The Economics of 350: The Benefits and Costs of Climate Stabilization (E3 Network, 2009, with Elizabeth A. Stanton et al.), and Poisoned for Pennies: The Economics of Toxics and Precaution (Island Press, 2008).

Ackerman is a founder and steering committee member of Economics for Equity and Environment (the E3 Network) and a member scholar of the Center for Progressive Reform in Washington, D.C. He is also a senior research fellow at the Global Development and Environment Institute of Tufts University, where he led the Research and Policy Program until 2007.

Ackerman earned his Ph.D. in economics at Harvard University in 1975 and has taught economics at Tufts University and the University of Massachusetts.

In his free time, he plays the trumpet in the Second Line Social Aid and Pleasure Society Brass Band, an amateur New Orleans-style band.

Ackerman welcomes media inquiries and invitations to speak and write on climate economics; the costs of inaction; critiques of conservative economic analyses; and international perspectives on climate protection.

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Recent Publications by Frank Ackerman

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Climate damages in the FUND model: A disaggregated analysis

Ecological Economics, in press; available online April 11, 2012

Author(s): Ackerman, F. ; Munitz, C.
Year: 2012

Research Area(s): Climate Economics

Description: This article examines the treatment of climate damages in the FUND model. By inserting software switches to turn individual features on and off, the authors obtain FUND's estimates for 15 categories of damages, and for components of the agricultural category. FUND, as used by the U.S. government to estimate the social cost of carbon, projects a net benefit of climate change in agriculture, offset by a slightly larger estimate of all other damages. Use of estimates from such models is arguably inappropriate for setting public policy. But as long as such models are being used in the policy-making process, an update to reflect newer research and correct modeling errors is needed before FUND's damage estimates can be relied on.
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Reason, Empathy, and Fair Play: the Climate Policy Gap

SEI Working paper 2012-02

Author(s): Stanton, E.A. ; Ackerman, F. ; Bueno, R.
Year: 2012

Research Area(s): Climate Economics

Description: To achieve the greatest possible human welfare, SEI's Climate and Regional Economics of Development (CRED) model calls for a rapid reduction of greenhouse gas emissions, beginning in the next decade and keeping cumulative 21st century carbon dioxide emissions below 2,000 Gt. This report explains why CRED recommends such stringent reductions when some other climate-economics models say that very slow emission reductions are the best policy. The document includes a foreword by Jomo Kwame Sundaram, UN Assistant Secretary-General for Economic Development.
Note: A summary of this report has been published as a UN Department of Economic and Social Affairs (UN/DESA) policy brief. Download it here (external link to PDF, 293kb).
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The $1.75 trillion lie

Michigan Journal of Environmental & Administrative Law 1:1, 127-158

Author(s): Heinzerling, L. ; Ackerman, F.
Year: 2012

Research Area(s): Climate Economics

Description: This article identifies serious flaws in a 2010 study commissioned by the Office of Advocacy of the U.S. Small Business Administration (SBA) that found that federal regulations impose annual economic costs of $1.75 trillion. This estimate has been widely circulated, in everything from newspapers to Congressional testimony, but Heinzerling and Ackerman find it is not credible. They find it reflects a misunderstanding of the definition of the relevant data, fails an elementary question on the normal distribution, pads the analysis with several years of near-identical data, and fails to recognise the difference between correlation and causation, among other problems. The SBA should acknowledge the study's many failings, they argue, and publicly disavow it.
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Epstein-Zin utility in DICE: Is risk aversion irrelevant to climate policy?

E3 Network working paper

Author(s): Ackerman, F. ; Stanton, E.A. ; Bueno, R.
Year: 2012

Research Area(s): Climate Economics

Description: Climate change involves uncertain probabilities of catastrophic risks, and very long-term consequences of current actions. Climate economics, therefore, is centrally concerned with the treatment of risk and time. Yet conventional assumptions about utility and optimal economic growth create a perverse connection between risk aversion and time preference, such that more aversion to current risks implies less concern for future outcomes, and vice versa. This paper introduces an accessible implementation of Epstein-Zin utility into the DICE model of climate economics, creating a hybrid "EZ-DICE" model. Using Epstein-Zin parameters from the finance literature and climate uncertainty parameters from the science literature, the authors find that the optimal climate policy in EZ-DICE calls for rapid abatement of carbon emissions; it is similar to standard DICE results with the discount rate set to equal the risk-free rate of return.
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Estimating Regions' Relative Vulnerability to Climate Damages in the CRED Model

SEI Working Paper WP-US-1103

Author(s): Stanton, E.A. ; Cegan, J. ; Bueno, R. ; Ackerman, F.
Year: 2012

Research Area(s): Climate Economics

Description: This article introduces the CRED climate vulnerability index (VI-CRED), developed for use in the CRED integrated assessment model. VI-CRED is an index of vulnerability to climate change, with the advantage of simplicity and transparency as compared to more complicated indices with dozens of components. VI-CRED apportions economic damages from climate change among world regions on the basis of differences in vulnerable sectors' contribution to gross domestic product, share of population living at less than 5 meters above sea level, and access to freshwater resources. Its results are broadly similar to those of other indices, but it assigns a more prominent role to water scarcity and, for this reason, includes the Middle East among the most vulnerable regions.

Note: This is an updated version of a paper first published in February 2011.
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