| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Time perspective and climate change policy
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| Autores: |
Karp, Larry S.
Tsur, Yacov
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| Data: |
2008-09-02
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| Ano: |
2008
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| Palavras-chave: |
Hyperbolic discounting
Markov Perfect Equilibria
Catastrophic climate change
Uncertainty
Environmental Economics and Policy
Resource /Energy Economics and Policy
C61
C73
D63
D99
Q54
|
| Resumo: |
The tendency to foreshorten time units as we peer further into the future provides an explanation for hyperbolic discounting at an intergenerational time scale. We study implications of hyperbolic discounting for climate change policy, when the probability of a climate-induced catastrophe depends on the stock of greenhouse gasses. We provide a positive analysis by characterizing the set of Markov perfect equilibria (MPE) of the intergenerational game amongst a succession of policymakers. Each policymaker reflects her generation’s preferences, including its hyperbolic discounting. For a binary action game, we compare the MPE set to a “restricted commitment” benchmark. We compare the associated “constant equivalent discount rates” and the willingness to pay to control climate change with assumptions and recommendations in the Stern Review on Climate Change.
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| Tipo: |
Working or Discussion Paper
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| Idioma: |
Inglês
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| Identificador: |
http://purl.umn.edu/42848
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| Relação: |
University of California, Berkeley>Department of Agricultural and Resource Economics>CUDARE Working Papers
CUDARE Working Papers
1062
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| Formato: |
47
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