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Distributional biases in the analysis of climate change

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  • Skott, Peter
  • Davis, Leila

Abstract

The economic analysis of global warming is dominated by models based on optimal growth theory. These representative-agent models have an intrinsic distributional bias in favor of the rich. The bias is compounded by the use of ‘revenue-neutrality’ in the allocation of emission permits. The result is mitigation recommendations that are biased downwards.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 85 (2013)
Issue (Month): C ()
Pages: 188-197

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Handle: RePEc:eee:ecolec:v:85:y:2013:i:c:p:188-197

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Web page: http://www.elsevier.com/locate/ecolecon

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Keywords: Representative agent; Welfare; Global warming; Inequality;

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  1. Chichilnisky, G., 1994. "Sustainable Development and Social Choice," Papers 94-02, Columbia - Graduate School of Business.
  2. Weitzman, Martin L., 2009. "On Modeling and Interpreting the Economics of Catastrophic Climate Change," Scholarly Articles 3693423, Harvard University Department of Economics.
  3. Armon Rezai & Duncan Foley & Lance Taylor, 2012. "Global warming and economic externalities," Economic Theory, Springer, vol. 49(2), pages 329-351, February.
  4. Graciela Chichilnisky & Geoffrey Heal, 1993. "Who Should Abate Carbon Emissions? An International Viewpoint," NBER Working Papers 4425, National Bureau of Economic Research, Inc.
  5. Olivier Blanchard, 2009. "The State of Macro," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 209-228, 05.
  6. Ackerman, Frank & Stanton, Elizabeth A. & Bueno, Ramón, 2013. "CRED: A new model of climate and development," Ecological Economics, Elsevier, vol. 85(C), pages 166-176.
  7. Debreu,Gerard Introduction by-Name:Hildenbrand,Werner, 1986. "Mathematical Economics," Cambridge Books, Cambridge University Press, number 9780521335614, October.
  8. Leila Davis & Peter Skott, 2011. "Positional goods, climate change and the social returns to investment," UMASS Amherst Economics Working Papers 2011-24, University of Massachusetts Amherst, Department of Economics.
  9. Baum, Seth D., 2009. "Description, prescription and the choice of discount rates," Ecological Economics, Elsevier, vol. 69(1), pages 197-205, November.
  10. Elizabeth Stanton, 2011. "Negishi welfare weights in integrated assessment models: the mathematics of global inequality," Climatic Change, Springer, vol. 107(3), pages 417-432, August.
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