Climatic change and its societal impacts have been a topic of considerable concern over the last decade. Economic analysis would seem to have much to contribute to society's understanding of the importance of this issue, yet the contributions of prior analyses have been limited. Consideration from a decision-analytic perspective suggests that more useful insights could be gained by evaluating the effects of a changing (rather than changed) climate and the potential adaptations of society to that changing climate. Linking physical and economic models of differing levels of aggregation can be useful in analyzing a changing climate.
S. T. Sonka is Professor, Department of Agricultural Economics, University of Illinois at Urbana-Champaign, and Principal Scientist at the Illinois State Water Survey. P. J. Lamb is Principal Scientist and Head, Climate and Meteorology Section, Illinois State Water Survey, and Professor, Department of Atmospheric Sciences, University of Illinois at Urbana-Champaign.