Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30615
Authors: 
Karp , Larry S.
Year of Publication: 
2009
Series/Report no.: 
CESifo Working Paper 2761
Abstract: 
I offer a selective review of discounting and climate policy. Analytic and numerical models show that different assumptions greatly change the degree to which decisions about climate policy depend on the discount rate. I discuss a claim that standard models exaggerate the current generation's sacrifices needed to internalize climate damages. This claim, if correct, affects the role of discounting. I argue that the assertion that the risk of catastrophic damage overwhelms discounting is unfounded. I show that the claim that we view the world in perspective” implies hyperbolic rather than constant discounting. climate change ; discounting ; intergenerational conflict ; catastrophic risk ; hyperbolic discounting
JEL: 
C61
C73
D63
D99
Q54
Document Type: 
Working Paper

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