| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP13708 |
| DP13708 Discounting the Future: on Climate Change, Ambiguity Aversion and Epstein-Zin Preferences | |
| Stan Olijslagers; Sweder van Wijnbergen | |
| 发表日期 | 2019-05-01 |
| 出版年 | 2019 |
| 语种 | 英语 |
| 摘要 | We show that empirically strongly supported deviations from standard expected time separable utility have a major impact on estimates of the willingness to pay to avoid future climate change risk. We propose a relatively standard integrated climate/economy model but add stochastic climate disasters. The model yields closed form solutions up to solving an integral, and therefore does not suffer from the curse of dimensionality of most numerical climate/economy models. Introducing Epstein-Zin preferences with an elasticity of substitution higher than one and ambiguity aversion leads to much larger estimates of the social cost of carbon (SCC) than obtained under power utility. The dominant parameters are the risk aversion coefficient and the elasticity of intertemporal substitution. Ambiguity aversion has more complicated consequences but overall also leads to substantially higher estimates of the SCC. |
| 主题 | Financial Economics |
| 关键词 | Social cost of carbon ambiguity aversion Epstein-zin preferences Stochastic differential utility Climate change |
| URL | https://cepr.org/publications/dp13708-0 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/542570 |
| 推荐引用方式 GB/T 7714 | Stan Olijslagers,Sweder van Wijnbergen. DP13708 Discounting the Future: on Climate Change, Ambiguity Aversion and Epstein-Zin Preferences. 2019. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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