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Equity Weighting and the Marginal Damage Costs of Climate Change AgEcon
Anthoff, David; Hepburn, Cameron; Tol, Richard S.J..
Climate change would impact different countries differently, and different countries have different levels of development. Equity-weighted estimates of the (marginal) impact of greenhouse gas emissions reflect these differences. Equity-weighted estimates of the marginal damage cost of carbon dioxide emissions are substantially higher than estimates without equity-weights; equity-weights may also change the sign of the social cost estimates. Equity weights need to be normalised. Our estimates differ by two orders of magnitude depending on the region of normalisation. A discounting error of equity weighted social cost of carbon estimates in earlier work (Tol, Energy Journal, 1999), led to an error of a factor two. Equity-weighted estimates are sensitive to...
Tipo: Working or Discussion Paper Palavras-chave: Marginal Damage Costs; Climate Change; Equity; Environmental Economics and Policy; Q54.
Ano: 2007 URL: http://purl.umn.edu/9325
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