Risk Aversion, Intergenerational Equity and Climate Change |
| |
Authors: | Minh Ha-Duong Nicolas Treich |
| |
Institution: | (1) CNRS-CIRED, Paris, France;(2) LEERNA-INRA, University of Toulouse, France |
| |
Abstract: | The paper investigates a climate-economy model with an iso-elastic welfare function in which one parameter measures relative risk-aversion and a distinct parameter measures resistance to intertemporal substitution.We show both theoretically and numerically that climate policy responds differently to variations in the two parameters. In particular, we show that higher but lower leads to increase emissions control. We also argue that climate-economy models based on intertemporal expected utility maximization, i.e. models where = , may misinterpret the sensitivity of the climate policy to risk-aversion. |
| |
Keywords: | climate change discounting equity risk-aversion |
本文献已被 SpringerLink 等数据库收录! |
|