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Intergenerational modelling of the greenhouse effect

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  • Spash, Clive L.

Abstract

A major implication of global climate change is that future generations will suffer severe damages while the current generation benefits. In this paper a model is developed to analyze the potential need for mitigating the adverse impacts of the greenhouse effect on efficiency grounds. The model characterises basic transfers, investigate the effect of greenhouse emissions, and analyze exogenous and endogenous uncertainty. The first (or current) generation faces the problem of dividing available resources amongst current consumption and transfers to future generations. A two-period model is presented in which the first generation may achieve beneficial transfers to the second by investment in capital (I), in technology (T), or by a direct bequest of final goods (B) and/or by leaving fossil fuel stocks undepleted.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40000.

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Date of creation: Jan 1994
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Handle: RePEc:pra:mprapa:40000

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Keywords: climate change; future generations; resource depletion; uncertainty; ethics; intergenerational transfers; equity; efficiency; optimisation modelling;

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  1. Cropper, M. L., 1976. "Regulating activities with catastrophic environmental effects," Journal of Environmental Economics and Management, Elsevier, vol. 3(1), pages 1-15, June.
  2. Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, American Economic Association, vol. 67(5), pages 972-74, December.
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