Intergenerational modelling of the greenhouse effect

Spash, Clive L. (1994): Intergenerational modelling of the greenhouse effect.

Abstract

A major implication of global climate change is that future generations will suffer severe damages while the current generation benefits. In this paper a model is developed to analyze the potential need for mitigating the adverse impacts of the greenhouse effect on efficiency grounds. The model characterises basic transfers, investigate the effect of greenhouse emissions, and analyze exogenous and endogenous uncertainty. The first (or current) generation faces the problem of dividing available resources amongst current consumption and transfers to future generations. A two-period model is presented in which the first generation may achieve beneficial transfers to the second by investment in capital (I), in technology (T), or by a direct bequest of final goods (B) and/or by leaving fossil fuel stocks undepleted.

• Item Type: MPRA Paper
• Language: English
• Keywords: climate change; future generations; resource depletion; uncertainty; ethics; intergenerational transfers; equity, efficiency; optimisation modelling
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q52 - Pollution Control Adoption and Costs ; Distributional Effects ; Employment Effects; H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling

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