An Overlapping Generations Model of Climate‐Economy Interactions

Richard B. Howarth

Scandinavian Journal of Economics, 1998, vol. 100, issue 3, 575-591

Abstract: A numerically calibrated overlapping generations model of climate change and the world econommy is examined in this paper. In the absence of intergenerational transfers, efficient rates of greenhouse gas emissions abatement rise from 16% in the present to 25% in the long run, while mean global temperature increases by 7.4°C relative to the preindustrial norm. A utilitarian optimum, which attaches equal weight to each generation's life‐cycle utility, yields abatement rates that rise from 48% to 89%, with a long‐run temperature increase of 3.4°C. A second‐best utilitarian path, in which intergenerational transfers are by assumption institutionally infeasible, also supports stringent abatement measures.

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
https://doi.org/10.1111/1467-9442.00123

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:100:y:1998:i:3:p:575-591

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520

Access Statistics for this article

Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

More articles in Scandinavian Journal of Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().