Climate Policy Under Intergenerational Discounting

Climate Policy Under Intergenerational Discounting: An Application of the Dynamic Integrated Climate-Economy Model (BestMasters) by Jonathan Orlando Zaddach
English | 28 Dec. 2015 | ISBN: 3658121335 | 72 Pages | PDF (True) | 1.1 MB

In this thesis, Orlando Zaddach applies a discounting scheme derived by Krysiak (2010) in the latest DICE model and presents its implications for optimal climate policy.
Furthermore, he carries out a one-factor-at-a-time (OFAT) sensitivity analysis to check the discounting scheme for robustness. It turns out that the proposed discounting scheme fails in incorporating consumer sovereignty and intergenerational equity sufficiently.
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