Intergenerational Fairness and Climate Change Adaptation Policy: An Economic Analysis
Journal Title: Green and Low-Carbon Economy - Year 2023, Vol 1, Issue 3
Abstract
Compared to existing needs, climate change adaptation policies are significantly deficient. Since many adaptation measures have the feature of a local public good, and since benefits accrue to later generations mainly, most environmental economists would argue that the public goods issue is the most plausible reason why incentives are often insufficient for achieving the optimal level of adaptation. Within a stylized overlapping generation model, we show that adaptation is subject to severe intergenerational consistency problems, if pure self-interest is a feature of the generation’s behavior. This explains among others why too little is invested into climate change adaptation. We also show that if the distribution of income between generations matters or if generations behave altruistic, this consistency conflict can be solved and offers possibilities for policy intervention.
Authors and Affiliations
Gunter Stephan
Keywords
Related Articles
- EP ID EP721780
- DOI 10.47852/bonviewGLCE3202670
- Views 51
- Downloads 0
Green Economy Versus Dark Health: Risk Tolerance Boosts Adaptation to Soot-Contaminated Environment
There are growing mental health concerns over soot contamination of Niger-delta communities as a result of oil exploration activities. Our study sought to understand soot risk tolerance (SRT) as a pathway through which t...
The Climate Policy of the Member States of the Eurasian Economic Union: Synchronizing with the Global Climate Change Agenda
The paper deals with the climate agenda in the Eurasian Economic Union. Particularly, it analyzes the current stage of implementation of green finance principles in the member states of the EAEU. In the article, the auth...
Research on the Trade-In Pricing Strategy of New Energy Vehicle Producers Considering the Consumers' Heterogeneous Behavior
In practice, trade-ins are offered by new energy vehicle (NEV) producers and include trade-in-for-new fuel vehicles and trade-in-for-NEVs. By using the game-analytical method, we mainly analyze the optimal pricing strate...
Sustainability of Renewable Energy Options as Compared to Coal-Fired Power Plants in Pakistan
Though frequent availability of energy is vital for economic growth, using any energy source can have a certain degree of impact on the environment. Pakistan is facing the worst power crisis nowadays. The government of P...
A New Criterion for the ESG Model
This article presents the results of the study, the purpose of which was to develop a new criterion for the Environment, Social, Governance (ESG) model and recommendations for its use in the ESG in determining the socio...