Climate Policy Under Intergenerational Discounting

1. Front Matter

   Pages I-VII

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2. Introduction

   • Jonathan Orlando Zaddach

   Pages 1-3

3. DICE-2013R and Other Integrated Assessment Models

   • Jonathan Orlando Zaddach

   Pages 5-9

4. Consumer Sovereignty vs. Intergenerational Equity: An Overview of the Stern-Nordhaus Debate

   • Jonathan Orlando Zaddach

   Pages 11-16

5. Intergenerational Discounting and Overlapping Generations Models

   • Jonathan Orlando Zaddach

   Pages 17-19

6. Intergenerational Discounting in the DICE Model

   • Jonathan Orlando Zaddach

   Pages 21-36

7. Conclusions

   • Jonathan Orlando Zaddach

   Pages 37-38

8. Back Matter

   Pages 39-64

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In this thesis, Orlando Zaddach applies a discounting scheme derived by Krysiak (2010) in the latest DICE model and presents its implications for optimal climate policy. Furthermore, he carries out a one-factor-at-a-time (OFAT) sensitivity analysis to check the discounting scheme for robustness. It turns out that the proposed discounting scheme fails in incorporating consumer sovereignty and intergenerational equity sufficiently.

• Integrated Assessment Model
• Intergenerational Equity
• Consumer Sovereignty
• Climate Change
• Overlapping Generations Model

• Lehrstuhl Volkswirtschaftslehre, FAU Universität Erlangen-Nürnberg, Nürnberg, Germany

  Jonathan Orlando Zaddach

Jonathan Orlando Zaddach studied economics at the Albert-Ludwigs-University of Freiburg and wrote his master thesis at the Department for International Economic Policy under the supervision of Prof. Dr. Günther G. Schulze. His second supervisor was Prof. Dr. Frank C. Krysiak from the University of Basel. Currently he is working on his PhD thesis at the Chair of Public Finance, Friedrich-Alexander-University Erlangen-Nürnberg.

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