Artikel
Additive damages, fat-tailed climate dynamics, and uncertain discounting
This paper in applied theory argues that there is a loose chain of reasoning connecting the following three basic links in the economics of climate change: 1) additive disutility damages may be appropriate for analyzing some impacts of global warming; 2) an uncertain feedback-forcing coefficient, which might be near one with infinitesimal probability, can cause the distribution of the future time trajectory of global temperatures to have fat tails and a high variance; 3) when high-variance additive damages are discounted at an uncertain rate of pure time preference, which might be near zero with infinitesimal probability, it can make expected present discounted disutility very large. Some possible implications for welfare analysis and climate-change policy are briefly noted.
- Sprache
-
Englisch
- Erschienen in
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Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 3 ; Year: 2009 ; Issue: 2009-39 ; Pages: 1-29 ; Kiel: Kiel Institute for the World Economy (IfW)
- Klassifikation
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Wirtschaft
Climate; Natural Disasters and Their Management; Global Warming
- Thema
-
Climate change
fat tails
Klimaveränderung
Soziale Kosten
Soziale Diskontrate
Risiko
Statistische Verteilung
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Weitzman, Martin L.
- Ereignis
-
Veröffentlichung
- (wer)
-
Kiel Institute for the World Economy (IfW)
- (wo)
-
Kiel
- (wann)
-
2009
- DOI
-
doi:10.5018/economics-ejournal.ja.2009-39
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Artikel
Beteiligte
- Weitzman, Martin L.
- Kiel Institute for the World Economy (IfW)
Entstanden
- 2009
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