Evaluating climate change from an economic perspective involves answering two questions. First, does policy affect the Earth's temperature? How much will the Earth warm if we do nothing? How much will the Earth warm if moderately strong measures are undertaken to reduce greenhouse gas (GHG) emissions? Second, if the Earth warms 1˚C (or 2˚ or 5˚C), what is the impact on human and non-human life? Unfortunately, no clear answers exist, so we must work within the context of uncertainty –viewing climate policy as a risk-management exercise, asking not only how to reduce the risk of a really bad future for humanity, but also how much this will cost. The rapid improvement in the cost-effectiveness of renewable energy sources and the emergence of electric vehicles as competitive alternatives to the internal combustion engine imply that these costs are falling, and may no longer be a serious obstacle to decarbonization of the economy. Geoffrey Heal represents Class VI.