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A Dynamic Analysis Of Human Welfare In A Warming Planet?

Author

Listed:
  • Humberto Llavador
  • John E. Roemer
  • Joaquim Silvestre
  • Joaquim Silvestre

    (Department of Economics, University of California Davis)

Abstract

Climate stabilization requires low GHG emissions. Is this consistent with nondecreasing human welfare? Our welfare index, called quality of life (QuoL), emphasizes education, knowledge, and the environment. We calibrate a multigenerational model with education, physical capital, knowledge and the environment. We reject discounted utilitarianism and adopt, first, the Intergenerational Maximin criterion, and, second, Human Development Optimization, that maximizes the QuoL of the first generation subject to a given future rate of growth. The computed paths have a QuoL higher than the year 2000 level for all generations. They require doubling the labor resources devoted to the creation of knowledge, whereas the fractions of labor allocated to consumption and leisure are similar to the reference ones. Higher growth rates require substantial increases in the fraction of labor devoted to education, together with moderate increases in the fractions of labor devoted to knowledge and the investment in physical capital.

Suggested Citation

  • Humberto Llavador & John E. Roemer & Joaquim Silvestre & Joaquim Silvestre, 2009. "A Dynamic Analysis Of Human Welfare In A Warming Planet?," Working Papers 95, University of California, Davis, Department of Economics.
    • Handle: RePEc:cda:wpaper:09-5
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Andreas Peichl & Nico Pestel, 2013. "Multidimensional Well‐Being at the Top: Evidence for Germany," Fiscal Studies, Institute for Fiscal Studies, vol. 34, pages 355-371, September.
    2. W. Botzen & Jeroen Bergh, 2014. "Specifications of Social Welfare in Economic Studies of Climate Policy: Overview of Criteria and Related Policy Insights," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(1), pages 1-33, May.
    3. José-Manuel Giménez-Gómez & Jordi Teixidó-Figueras & Cori Vilella, 2016. "The global carbon budget: a conflicting claims problem," Climatic Change, Springer, vol. 136(3), pages 693-703, June.
    4. Gerlagh, Reyer, 2017. "Generous Sustainability," Ecological Economics, Elsevier, vol. 136(C), pages 94-100.
    5. Geir B. Asheim, 2017. "Sustainable growth," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(3), pages 825-848, December.
    6. Michele Lombardi & Roberto Veneziani, 2009. "Liberal Egalitarianism and the Harm Principle," Global COE Hi-Stat Discussion Paper Series gd09-078, Institute of Economic Research, Hitotsubashi University.
    7. Llavador, Humberto & Roemer, John E. & Silvestre, Joaquim, 2010. "Intergenerational justice when future worlds are uncertain," Journal of Mathematical Economics, Elsevier, vol. 46(5), pages 728-761, September.
    8. repec:wly:econjl:v:126:y:2016:i:597:p:2173-2196 is not listed on IDEAS
    9. Cairns, Robert D. & Martinet, Vincent, 2014. "An environmental-economic measure of sustainable development," European Economic Review, Elsevier, vol. 69(C), pages 4-17.
    10. Humberto Llavador & John E. Roemer & Joaquim Silvestre, 2013. "Should we sustain? And if so, sustain what? Consumption or the quality of life?," Chapters,in: Handbook on Energy and Climate Change, chapter 30, pages 639-665 Edward Elgar Publishing.
    11. John Roemer, 2013. "Once More on Intergenerational Discounting in Climate-Change Analysis: Reply to Partha Dasgupta," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(1), pages 141-148, September.
    12. Matthew Adler & Nicolas Treich, 2015. "Prioritarianism and Climate Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(2), pages 279-308, October.
    13. John Roemer, 2011. "The Ethics of Intertemporal Distribution in a Warming Planet," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(3), pages 363-390, March.
    14. Rozenberg, Julie & Vogt-Schilb, Adrien & Hallegatte, Stephane, 2013. "How capital-based instruments facilitate the transition toward a low-carbon economy : a tradeoff between optimality and acceptability," Policy Research Working Paper Series 6609, The World Bank.
    15. Humberto Llavador & John E. Roemer & Joaquim Silvestre, 2010. "North-South Convergence and the Allocation of CO2 Emissions," Working Papers 493, Barcelona Graduate School of Economics.
    16. Jan Siegmeier & Linus Mattauch & Max Franks & David Klenert & Anselm Schultes & Ottmar Edenhofer, 2015. "A Public Finance Perspective on Climate Policy: Six Interactions That May Enhance Welfare," Working Papers 2015.31, Fondazione Eni Enrico Mattei.
    17. Fleurbaey, Marc, 2015. "On sustainability and social welfare," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 34-53.
    18. Quaas, Martin F. & Bröcker, Johannes, 2016. "Substitutability and the social cost of carbon in a solvable growth model with irreversible climate change," Economics Working Papers 2016-09, Christian-Albrechts-University of Kiel, Department of Economics.
    19. Dieckhoener, Caroline & Hecking, Harald, 2012. "Greenhouse Gas Abatement Cost Curves of the Residential Heating Market – a Microeconomic Approach," EWI Working Papers 2012-16, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    20. repec:kap:enreec:v:68:y:2017:i:4:d:10.1007_s10640-016-0052-0 is not listed on IDEAS

    More about this item

    Keywords

    Quality of life; climate change; education; maximin; growth;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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