Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/165952 
Year of Publication: 
2016
Series/Report no.: 
Memorandum No. 09/2016
Publisher: 
University of Oslo, Department of Economics, Oslo
Abstract: 
The future effects of climate change may induce increased intergenerational altruism. But will increased intergenerational altruism reduce the threat of climate change? In this chapter we investigate this question. In a second-best setting with insufficient control of greenhouse gas emissions in the atmosphere, increased transfers to future generations through accumulation of capital might result in additional accumulation of greenhouse gases, and thereby aggravate the climate problem. In contrast, transfers to the future through control of greenhouse gas emissions will alleviate the climate problem. Whether increased intergenerational altruism is a means for achieving accumulation of consumption potential (through accumulation of capital) without increasing the climate threat depends on how it affects factors motivating the accumulation of capital and the control of emissions of greenhouse gases. An argument is provided for why increased intergenerational altruism in fact will aggravate the climate problem. We use the models of Jouvet et al. (2000), Karp (forthcoming) and Asheim and Nesje (forthcoming) to facilitate the discussion.
Subjects: 
intergenerational altruism
climate change
JEL: 
D63
D64
Q01
Q54
Document Type: 
Working Paper

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