Sacrifice, discounting and climate policy: five questions

I provide a selective review of discounting and climate policy. After reviewing evidence on the importance of the discount rate in setting policy, I ask whether standard models tend to exaggerate the sacrifices that the current generation needs to undertake in order to internalize climate damages. I then consider whether the risk of catastrophic damage really overwhelms discounting, in the determination of optimal policy. I revisit the question of how we actually think about the distant future.


Issue Date:
Jun 12 2009
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/51612
PURL Identifier:
http://purl.umn.edu/51612
Total Pages:
29
JEL Codes:
C61; C73; D63; D99; Q54
Series Statement:
CUDARE Working Papers
1086




 Record created 2017-04-01, last modified 2020-10-28

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