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Distributional biases in the analysis of climate change

  • Skott, Peter
  • Davis, Leila

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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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
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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  1. Chichilnisky, G., 1994. "Sustainable Development and Social Choice," Papers 94-02, Columbia - Graduate School of Business.
  2. Olivier Blanchard, 2009. "The State of Macro," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 209-228, 05.
  3. Martin L. Weitzman, 2009. "On Modeling and Interpreting the Economics of Catastrophic Climate Change," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 1-19, February.
  4. Baum, Seth D., 2009. "Description, prescription and the choice of discount rates," Ecological Economics, Elsevier, vol. 69(1), pages 197-205, November.
  5. 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.
  6. Graciela Chichilnisky & Geoffrey Heal, 1993. "Who Should Abate Carbon Emissions? An International Viewpoint," NBER Working Papers 4425, National Bureau of Economic Research, Inc.
  7. repec:cup:cbooks:9780521335614 is not listed on IDEAS
  8. 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.
  9. 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.
  10. Armon Rezai & Duncan Foley & Lance Taylor, 2012. "Global warming and economic externalities," Economic Theory, Springer, vol. 49(2), pages 329-351, February.
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