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Economic Incentives, Intergenerational Altruism and Sustainability

  • Gunter Stephan
  • Georg Müller-Fürstenberger
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 18)

Abstract

Within the framework of a small scale numerical model this paper carries out a simple thought experiment There are two perspectives: one, in which investment-saving decisions are made by an immortal agent acting as trustee on the behalf of both present and future generations; and one in which generations simply save during working years and dissave during retirement, but where carbon rights are traded internationally on competitive markets. Despite these polar views on intergenerational altruism virtually the same results can be observed with respect to sustainability as well as the variables directly relevant to the greenhouse problem.

Keywords

Discount Rate Climate Policy Abatement Activity Social Discount Rate Atmospheric Carbon Dioxide Concentration 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Gunter Stephan
    • 1
  • Georg Müller-Fürstenberger
    • 1
  1. 1.University of BerneGermany

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