Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100287
Authors: 
Schöb, Ronnie
Aronsson, Thomas
Year of Publication: 
2014
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2014: Evidenzbasierte Wirtschaftspolitik - Session: Voluntary Individual Mitigation of Climate Change G06-V1
Abstract: 
Economic models of climate policy (or policies to combat other environmental problems) typically neglect psychological adaptation to changing life circumstances. People may adapt or become more sensitive, to different degrees, to a deteriorated environment. The present paper addresses these issues in a simple model of tax policy to combat climate change and elaborates on the consequences for optimal climate policies. Furthermore, it argues from a normative point of view that psychological adaptation needs to be taken into account by a pure welfarist government, which aims at internalizing an intertemporal externality.
JEL: 
D03
D61
H21
Document Type: 
Conference Paper

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