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The Aggregation Dilemma

Author

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  • Ingmar Schumacher

Abstract

The results in this paper show that the level of aggregation used in a social welfare func- tion matters significantly for policy analysis. Using climate change as an example, it is shown that, under the mild and widely-accepted assumptions of asymmetr

Suggested Citation

  • Ingmar Schumacher, 2014. "The Aggregation Dilemma," Working Papers 2014-224, Department of Research, Ipag Business School.
  • Handle: RePEc:ipg:wpaper:2014-224
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    File URL: http://www.ipag.fr/wp-content/uploads/recherche/WP/IPAG_WP_2014_224.pdf
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    References listed on IDEAS

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    1. Schumacher, Ingmar, 2015. "The endogenous formation of an environmental culture," European Economic Review, Elsevier, vol. 76(C), pages 200-221.
    2. Stephen C. Peck & Thomas J. Teisberg, 1999. "CO2 Emissions Control Agreements: Incentives for Regional Participation," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 367-390.
    3. Marchiori, Luca & Maystadt, Jean-François & Schumacher, Ingmar, 2012. "The impact of weather anomalies on migration in sub-Saharan Africa," Journal of Environmental Economics and Management, Elsevier, vol. 63(3), pages 355-374.
    4. Ray, Debraj & Vohra, Rajiv, 1999. "A Theory of Endogenous Coalition Structures," Games and Economic Behavior, Elsevier, vol. 26(2), pages 286-336, January.
    5. Popp, David, 2006. "ENTICE-BR: The effects of backstop technology R&D on climate policy models," Energy Economics, Elsevier, vol. 28(2), pages 188-222, March.
    6. Martin L. Weitzman, 2007. "A Review of the Stern Review on the Economics of Climate Change," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 703-724, September.
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    Cited by:

    1. repec:ipg:wpaper:2014-496 is not listed on IDEAS
    2. Ingmar Schumacher, 2014. "The Aggregation Dilemma in Climate Change Policy Evaluation," Working Papers 2014-428, Department of Research, Ipag Business School.

    More about this item

    Keywords

    Aggregation Dilemma; social welfare function; Integrated Assessment Models; climate policy.;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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