Showing 1 - 10 of 43
Recent contributions show that climate agreements with broad participation can be implemented as weakly renegotiation-proof equilibria in simple models of greenhouse gas abatement where each country has a binary choice between cooperating (i.e., abate emissions) or defecting (no abatement). Here...
Persistent link: https://www.econbiz.de/10010285562
This paper presents an adjusted Faustmann Rule for optimal harvest of a forest in the presence of a social cost of carbon emissions. A contribution of the paper is to do this within theoretical and numerical frameworks that take account of the dynamics and interactions of the forest's multiple...
Persistent link: https://www.econbiz.de/10010330252
Climate policies have stochastic consequences that involve a great number of generations. This calls for evaluating social risk (what kind of societies will future people be born into) rather than individual risk (what will happen to people during their own lifetimes). As a response we propose...
Persistent link: https://www.econbiz.de/10011335597
Evaluation of climate policies and other issues requires a variable population setting where population is endogenously determined. We propose and axiomatize the rank-discounted critical-level utilitarian social welfare order. It is shown to ll out the space between critical-level utilitarianism...
Persistent link: https://www.econbiz.de/10010330233
The Dasgupta-Heal-Solow-Stiglitz model of capital accumulation and resource depletion poses the following sustainability problem: is it feasible to sustain indefinitely a level of consumption that is bounded away from zero? We provide a complete technological characterization of the...
Persistent link: https://www.econbiz.de/10010330259
The Chichilnisky criterion is an explicit social welfare function that satisfies compelling conditions of intergenerational equity. However, it is time inconsistent and has no optimal solution in the Ramsey model. By investigating stationary Markov equilibria in the game that generations with...
Persistent link: https://www.econbiz.de/10011557202
We provide comparable algorithms for the Dekel-Fudenberg procedure, iterated admissibility, proper rationalizability and full permissibility by means of the concepts of preference restrictions and likelihood orderings. We apply the algorithms for comparing iterated admissibility, proper...
Persistent link: https://www.econbiz.de/10012058688
When evaluating well-being distributions in an anonymous (and replication invariant) manner, one faces a dilemma between (i) assigning dictatorship to a single worst-off person, thus succumbing to a tyranny of non-aggregation and (ii) assigning dictatorship to (unboundedly) many better-off...
Persistent link: https://www.econbiz.de/10012058698
Are the probable future negative effects of climate change an argument for decreasing the discount rate to promote the interests of future generations? The analysis of the present paper suggests that such stronger intergenerational altruism might undermine future wellbeing if not complemented by...
Persistent link: https://www.econbiz.de/10011694168
This paper explores the view that a criterion of intergenerational equity serves to make choices according to ethical intuitions on a domain of relevant technological environments. In line with this view I first calibrate different criteria of intergenerational equity in the AK model of economic...
Persistent link: https://www.econbiz.de/10011694175