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discounting environment consumption with an environmental discount rate instead of a consumption discount rate that is usually … in justifying substantial emission reductions depends on whether or not environment and goods consumption are substitutes … implies the marginal utility of goods consumption to be decreasing in environment consumption). Moreover, a low intratemporal …
Persistent link: https://www.econbiz.de/10005083352
This paper derives analytically the growth rate of the social cost of carbon (SSC) on an optimal balanced growth path. More specifically, the paper examines a deterministic Ramsey model of optimal economic growth with carbon emissions. In this model, restrictions on technology and preferences...
Persistent link: https://www.econbiz.de/10009294880
This paper derives the social cost of carbon (SCC) and its rate of change. It does so in a deterministic Ramsey model of optimal economic growth with carbon emissions from burning fossil fuels. It is shown that the determinants of the rate of change of the SCC are substantially almost identical...
Persistent link: https://www.econbiz.de/10010983177