Data/hora: 16/06/2024 02:55:44

Provedor de dados: | 31
País: | United States
Título: | CLIMATE POLICY WHEN THE DISTANT FUTURE MATTERS: CATASTROPHIC EVENTS WITH HYPERBOLIC DISCOUNTING
Autores: | Karp,   Larry S.; Tsur,   Yacov.
Data: | 2008-02-28
Ano: | 2007
Palavras-chave: | Abrupt climate change; Event uncertainty; Catastrophic risk; Hyperbolic discounting; Markov Perfect Equilibria; Environmental Economics and Policy; C61; C73; D63; D99; Q54.
Resumo: | Low probability catastrophic climate change can have a signifcant influence on policy under hyperbolic discounting. We compare the set of Markov Perfect Equilibria (MPE) to the optimal policy under time-consistent commitment. For some initial levels of risk there are multiple MPE; these may involve either excessive or insufficient stabilization effort. These results imply that even if the free-rider problem amongst contemporaneous decision-makers were solved, there may remain a coordination problem amongst successive generations of decision-makers. A numerical example shows that under plausible conditions society should respond vigorously to the threat of climate change.
Tipo: | Working or Discussion Paper
Idioma: | Inglês

Identificador:

27290

http://purl.umn.edu/7181

Relação:

Hebrew University of Jerusalem&gt;Department of Agricultural Economics and Management&gt;Discussion Papers

Discussion Paper

No. 5.07

Formato: | 52