IDEAS home Printed from https://ideas.repec.org/p/ags/cudawp/127997.html
   My bibliography  Save this paper

Time Preference, Abatement Costs, and International Climate Policy: An Appraisal of IPCC 1995

Author

Listed:
  • Khanna, Neha
  • Chapman, Duane

Abstract

This paper appraises current economic methodologies used in analyzing the social rate of time preference and discounting, abatement costs, and value of life estimates as they relate to climate change. It makes a case for choosing an appropriate rate of time preference when assessing climate policies, including both positive and normative considerations. Furthermore, the paper argues that the currently estimated disparity in the cost of greenhouse gas abatement between developed countries and developing countries may be inaccurate. Integrating discount rates, abatement costs, and value of life estimates highlights important and contrasting implications of international climate policy for developing and high‐income countries. The context of the paper is the forthcoming Second Assessment Report of Working Group III of the Intergovernmental Panel on Climate Change.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Khanna, Neha & Chapman, Duane, 1995. "Time Preference, Abatement Costs, and International Climate Policy: An Appraisal of IPCC 1995," Working Papers 127997, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:127997
    DOI: 10.22004/ag.econ.127997
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/127997/files/Cornell_Dyson_wp9511.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.127997?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Duane Chapman & Thomas Drennen, 1990. "Equity And Effectiveness Of Possible Co2 Treaty Proposals," Contemporary Economic Policy, Western Economic Association International, vol. 8(3), pages 16-28, July.
    2. Marini Giancarlo & Scaramozzino Pasquale, 1995. "Overlapping Generations and Environmental Control," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 64-77, July.
    3. Conrad, Jon M., 1995. "Global Warming: When to Bite the Bullet," Working Papers 127957, Cornell University, Department of Applied Economics and Management.
    4. Duane Chapman & Vivek Suri & Steven G. Hall, 1995. "Rolling Dice For The Future Of The Planet," Contemporary Economic Policy, Western Economic Association International, vol. 13(3), pages 1-9, July.
    5. Burton Peter S., 1993. "Intertemporal Preferences and Intergenerational Equity Considerations in Optimal Resource Harvesting," Journal of Environmental Economics and Management, Elsevier, vol. 24(2), pages 119-132, March.
    6. Otto Eckstein, 1957. "Investment Criteria for Economic Development and the Theory of Intertemporal Welfare Economics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 71(1), pages 56-85.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chukwumerije Okereke, 2017. "A six-component model for assessing procedural fairness in the Intergovernmental Panel on Climate Change (IPCC)," Climatic Change, Springer, vol. 145(3), pages 509-522, December.
    2. Schultz, Peter A & Kasting, James F, 1997. "Optimal reductions in CO2 emissions," Energy Policy, Elsevier, vol. 25(5), pages 491-500, April.
    3. Barron, Eric & Chapman, Duane & Khanna, Neha & Rose, Adam Z. & Schultz, Peter A. & Kasting, James F., 1996. "Penn State -Cornell Integrated Assessment Model," Working Papers 127929, Cornell University, Department of Applied Economics and Management.
    4. Mount, Timothy D. & Chapman, Duane & Khanna, Neha, 1997. "An Exploration of the Differences in National Growth: Some Implications for Future Environmental Policy," Working Papers 127886, Cornell University, Department of Applied Economics and Management.
    5. Khanna, Neha & Chapman, Duane, 1997. "Climate Policy And Petroleum Depletion," Working Papers 127811, Cornell University, Department of Applied Economics and Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard B. Howarth, 1996. "Climate Change And Overlapping Generations," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 100-111, October.
    2. Laurence Kotlikoff & Felix Kubler & Andrey Polbin & Simon Scheidegger, 2021. "Pareto-improving carbon-risk taxation [The environment and directed technical change]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 36(107), pages 551-589.
    3. Laurence J. Kotlikoff & Andrey V. ZUBAREV & Andrey POLBIN, 2021. "Will the Paris accord accelerate climate change [Ускоряет Ли Парижское Соглашение Изменение Климата?]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 8-37, February.
    4. Endress, Lee H. & Pongkijvorasin, Sittidaj & Roumasset, James & Wada, Christopher A., 2014. "Intergenerational equity with individual impatience in a model of optimal and sustainable growth," Resource and Energy Economics, Elsevier, vol. 36(2), pages 620-635.
    5. Maik T. Schneider & Christian Traeger & Ralph Winkler, 2010. "Trading Off Generations: Infinitely-Lived Agent Versus OLG," CER-ETH Economics working paper series 10/128, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    6. Kavuncu, Y. Okan & Knabb, Shawn D., 2005. "Stabilizing greenhouse gas emissions: Assessing the intergenerational costs and benefits of the Kyoto Protocol," Energy Economics, Elsevier, vol. 27(3), pages 369-386, May.
    7. Can Askan Mavi, 2017. "What Can Abrupt Events Tell Us About Sustainability ?," Working Papers hal-01628682, HAL.
    8. Laurence Kotlikoff & Felix Kubler & Andrey Polbin & Jeffrey Sachs & Simon Scheidegger, 2021. "Making Carbon Taxation A Generational Win Win," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(1), pages 3-46, February.
    9. Lee H. Endress & Sittidaj Pongkijvorasin & James Roumasset & Christopher Wada, 2013. "Intergenerational Equity with Individual Impatience in an OLG Model of Optimal and Sustainable Growth," Working Papers 2013-9, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    10. Laurence J. Kotlikoff & Felix Kubler & Andrey Polbin & Simon Scheidegger, 2021. "Can Today's and Tomorrow's World Uniformly Gain from Carbon Taxation?," NBER Working Papers 29224, National Bureau of Economic Research, Inc.
    11. Sumaila, Ussif R. & Walters, Carl, 2005. "Intergenerational discounting: a new intuitive approach," Ecological Economics, Elsevier, vol. 52(2), pages 135-142, January.
    12. KAVUNCU Y. Okan, 2010. "Reconsidering Intergenerational Cost-Benefit Analysis of Climate Change: An Endogenous Abatement Approach," EcoMod2003 330700079, EcoMod.
    13. Kavuncu, Yusuf Okan & Knabb, Shawn D., 2001. "An Intergenerational Cost-Benefit Analysis of Climate Change," University of California at Santa Barbara, Economics Working Paper Series qt72v881dd, Department of Economics, UC Santa Barbara.
    14. Frederick, Shane, 2006. "Valuing future life and future lives: A framework for understanding discounting," Journal of Economic Psychology, Elsevier, vol. 27(5), pages 667-680, October.
    15. Can Askan Mavi, 2019. "What can catastrophic events tell us about sustainability?," Post-Print halshs-02142121, HAL.
    16. Mavi, Can Askan, 2019. "What can catastrophic events tell us about sustainability?," Journal of Mathematical Economics, Elsevier, vol. 83(C), pages 70-83.
    17. Hoberg, Nikolai & Baumgärtner, Stefan, 2017. "Irreversibility and uncertainty cause an intergenerational equity-efficiency trade-off," Ecological Economics, Elsevier, vol. 131(C), pages 75-86.
    18. Lugovoy, O. & Polbin, A., 2016. "On Intergenerational Distribution of the Burden of Greenhouse Gas Emissions," Journal of the New Economic Association, New Economic Association, vol. 31(3), pages 12-39.
    19. Schneider, Maik T. & Traeger, Christian P. & Winkler, Ralph, 2012. "Trading off generations: Equity, discounting, and climate change," European Economic Review, Elsevier, vol. 56(8), pages 1621-1644.
    20. Richard Howarth, 2000. "Climate Change and the Representative Agent," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 15(2), pages 135-148, February.

    More about this item

    Keywords

    Environmental Economics and Policy;

    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:ags:cudawp:127997. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dacorus.html .

    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.