IDEAS home Printed from https://ideas.repec.org/h/spr/conchp/978-3-030-76753-2_5.html
   My bibliography  Save this book chapter

Global Carbon Budgeting and the Social Cost of Carbon

In: Natural Resource Pricing and Rents

Author

Listed:
  • Andrey Vavilov

    (Institute for Financial Studies)

  • Georgy Trofimov

    (Institute for Financial Studies)

Abstract

The limited availability of natural resources on the global level relates primarily to the influence of fossil energy use on climate change, rather than to the exhaustion of fossil energy resources. In this chapter we consider a version of the Integrated Assessment climate-economy model with overlapping generations and fossil energy as an input in production. In a laissez-faire equilibrium, individuals do not account in their production plans for the negative external effects of carbon dioxide emission. These effects are internalized by a “social planner” solving the problem of optimal accumulation of global wealth and carbon dioxide concentration in the atmosphere. The carbon budget is defined for this problem as the optimal concentration of carbon dioxide in the long term. The social opportunity cost of fossil fuel consumption supporting this budget is given by the present value of marginal welfare losses of future generations. We examine the effects of welfare discounting on the long-term outcome and, in particular, on the welfare of distant future generations.

Suggested Citation

  • Andrey Vavilov & Georgy Trofimov, 2021. "Global Carbon Budgeting and the Social Cost of Carbon," Contributions to Economics, in: Natural Resource Pricing and Rents, chapter 0, pages 107-139, Springer.
    • Handle: RePEc:spr:conchp:978-3-030-76753-2_5
    DOI: 10.1007/978-3-030-76753-2_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:conchp:978-3-030-76753-2_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.