Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154768
Authors: 
Moretto, Michele
Tamborini, Roberto
Year of Publication: 
1997
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 4.1997
Abstract: 
In this paper the climate change effect is an unforeseen earth temperature level above which a negative externality on technology and hence on society's welfare is exerted. We use a dynamic overlapping generations model to develop a positive analysis of the growth path of an economy with the negative temperature spillover leading to a structural breakdown in capital productivity. Two scenarios for the impact of climate change on intergenerational equity are analyzed: the first is consistent with a state-of-nature framework in which atomistic agents cannot influence the probability that a particular event (productivity collapse) will occur. In the second, according to the maxim "that everybody does what I am doing...«, agents recognize that their choices may influence the probability of productivity collapse occurring in their lifetime.
Subjects: 
Global Warming
Event Uncertainty
Overlapping Generations
JEL: 
C61
D81
Q25
Document Type: 
Working Paper

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