Robust Consumption and Energy Decisions

Evan Anderson, William Brock and Alan H. Sanstad

No 250117, 2017 Allied Social Sciences Association (ASSA) Annual Meeting, January 6-8, 2017, Chicago, Illinois from Agricultural and Applied Economics Association

Abstract: We study a simple model of economic growth where society’s preferences are a function of consumption per capita and climate quality; and the specification of the climate dynamics is inspired by recent work in climate science. The model is estimated to establish a reference model and we develop a new method that determines the reasonable size of a set of surrounding models which are difficult to distinguish from the reference model. We show that robust agents who deny the effects of climate change on the economy, behave more like agents who believe climate changes are real. This happens because robust non-believers design policies that hedge against their worst case model which does include an anthropogenic effect of their emissions on climate and these changes in climate have negative effects on preferences and productivity.

Keywords: Consumer/Household Economics; Resource /Energy Economics and Policy (search for similar items in EconPapers)
Pages: 64
Date: 2016-11
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/250117/files/R ... ergy%20Decisions.pdf (application/pdf)

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:ags:assa17:250117

DOI: 10.22004/ag.econ.250117

Access Statistics for this paper

More papers in 2017 Allied Social Sciences Association (ASSA) Annual Meeting, January 6-8, 2017, Chicago, Illinois from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().