Distributional biases in the analysis of climate change

Peter Skott and Leila Davis

UMASS Amherst Economics Working Papers from University of Massachusetts Amherst, Department of Economics

Abstract: The economic analysis of global warming is dominated by models based on optimal growth theory. These representative-agent models have an intrinsic distributional bias in favor of the rich. The bias is compounded by the se of revenue-neutrality in the allocation of emission permits. The result is mitigation recommendations that are biased downwards. JEL Categories: Q13, I3, E1

Keywords: representative agent; welfare; global warming; inequality. (search for similar items in EconPapers)
Date: 2011-10
New Economics Papers: this item is included in nep-ene, nep-env and nep-res
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Journal Article: Distributional biases in the analysis of climate change (2013)
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