DISCOUNTING AND CLIMATE CHANGE POLICY

Larry Karp and Yacov Tsur

No 7149, Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management

Abstract: A constant social discount rate cannot reflect both a reasonable opportunity cost of public funds and an ethically defensible concern for generations in the distant future. We use a model of hyperbolic discounting that achieves both goals. We imbed this discounting model in a simple climate change model to calculate constant equivalent discount rates" and plausible levels of expenditure to control climate change. We compare these results to discounting assumptions and policy recommendations in the Stern Review on Climate Change.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 30
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://ageconsearch.umn.edu/record/7149/files/dp070009.pdf (application/pdf)

Related works:
Working Paper: Discounting and Climate Change Policy (2007)
Working Paper: Discounting and Climate Change Policy (2007)
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:huaedp:7149

DOI: 10.22004/ag.econ.7149

Access Statistics for this paper

More papers in Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().