Modeling the Economics of Greenhouse Gas Abatement: An Overlapping Generations Perspective

Tobias Rasmussen ()

Review of Economic Dynamics, 2003, vol. 6, issue 1, 99-119

Abstract: This paper analyzes the implications of using an overlapping generations model for simulating the effects of greenhouse gas abatement policies rather than the traditional approach based on an infinitely lived agent. The overlapping generations framework has many appealing characteristics. In particular, by not aggregating different generations, it avoids imposing implicitly a social welfare function that discounts the utility of people living in the future. The results show that the costs of imposing a tax on CO2 emissions are highly unequally distributed. Generations to be born a century from now stand to incur substantial losses while those alive in the near future will suffer much less and the current old may even experience a gain. (Copyright: Elsevier)

Keywords: Climate-change policy; Overlapping generations; Dynamic general equilibrium (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (23)

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DOI: 10.1016/S1094-2025(02)00010-8

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