What really matters: Discounting, technological change and sustainable climate

Arbeitspapier

This paper discusses the interplay between the choice of the discount rate, greenhouse gas mitigation and endogenous technological change. Neglecting the issue of uncertainty it is shown that the green golden rule stock of atmospheric carbon is uniquely determined, but is not affected by technological change. More general it is shown analytically within the framework of a reduced model of integrated assessment that optimal stationary stocks of atmospheric carbon depend on the choice of the discount rate, but are independent of the stock of technological knowledge. These results are then reinforced numerically in a fully specified integrated assessment analysis.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Papers ; No. 10-08

Classification and Topics

• Classification: Wirtschaft ; Energy: General ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
• Subject: integrated assessment ; discount rate ; endogenous technological change ; climate change ; Treibhausgas ; Umweltschutz ; Klimawandel ; Endogener technischer Fortschritt ; Theorie

Contributors, Location and Time

• Event: Geistige Schöpfung
• (who): Müller-Fürstenberger, Georg ; Stephan, Gunter
• Event: Veröffentlichung
• (who): University of Bern, Department of Economics
• (where): Bern
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/76758
• Last update: 10.03.2025, 11:43 AM CET