Data/hora: 12/06/2024 07:33:13

Provedor de dados: 	31	
País: 	United States	
Título: 	Endogenous Discounting and Climate Policy	
Autores: 	Tsur,   Yacov; Zemel,   Amos.	
Data: 	2008-07-23	
Ano: 	2008	
Palavras-chave: 	Abrupt climate change; Hazard rate; Discounting; Economic growth; Emission policy; H23; H41; O13; O40; Q54; Q58.	
Resumo: 	Under risk of abrupt climate change, the occurrence hazard is added to the social discount rate. As a result, the social discount rate (i) increases and (ii) turns endogenous to the global warming policy. The second effect bears profound policy implications that are magnified by economic growth. In particular, we find that greenhouse gases (GHG) emission should be terminated at a finite time so that the ensuing occurrence risk will vanish in the long run. Due to the public bad nature of the catastrophic risk, the second effect is ignored in a competitive allocation and unregulated economic growth will give rise to excessive emissions. In fact, the GHG emission paths under the optimal and competitive growth regimes lie at the extreme ends of the range of feasible emissions. We derive the Pigouvian hazard tax that implements the optimal growth regime.	
Tipo: 	Working or Discussion Paper	
Idioma: 	Inglês	
Identificador: 	http://purl.umn.edu/37944	
Relação: 	Hebrew University of Jerusalem&gt;Department of Agricultural Economics and Management&gt;Discussion Papers

Discussion Paper

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