Global Demographic Change and Climate Policies

Reyer Gerlagh, Richard Jaimes and Ali Motavasseli

No 6617, CESifo Working Paper Series from CESifo

Abstract: Between 1950 and 2017, world average life expectancy increased from below-50 to above-70, while the fertility rate dropped from 5 to about 2.5. We develop and calibrate an analytic climate-economy model with overlapping generations to study the effect of such demographic change on capital markets and optimal climate policies. Our model replicates findings from the OLG-demography literature, such as a rise in households’ savings, and a declining rate of return to capital. We also find that demographic change raises the social cost of carbon, at 2020, from 28 euro/tCO2 in a model that abstracts from demography, to 94 euro/tCO2 in our calibrated model.

Keywords: climate change; social cost of carbon; environmental policy; demographic trends (search for similar items in EconPapers)
JEL-codes: H23 J11 Q54 Q58 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-age, nep-dge, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Global Demographic Change and Climate Policies (2017)
Working Paper: Global Demographic Change and Climate Policies (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_6617

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