气候变化领域集成服务门户(CCPortal): Escaping Damocles' Sword: Endogenous Climate Shocks in a Growing Economy

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DOI	10.1007/s10640-023-00835-w
	Escaping Damocles' Sword: Endogenous Climate Shocks in a Growing Economy
	Brausmann, Alexandra; Bretschger, Lucas
发表日期	2024
ISSN	0924-6460
EISSN	1573-1502
英文摘要	We consider a growing economy which is subject to recurring, random, uninsurable, and potentially large and long-lasting climate shocks leading to destruction of infrastructure, land degradation, collapse of ecosystems or similar loss of productive capacity. The associated damages and the hazard rate are endogenously driven by the stock of greenhouse gases. We highlight the important role of the relative risk aversion and provide analytical solutions for the optimal climate policy, the growth rate and the saving propensity of the economy. We stress the importance of jointly determining these variables, especially if the objective is to formulate meaningful policy prescriptions. If, for example, the growth rate or the saving rate are assumed to be exogenous, and thus independent of the characteristics of climate shocks and economic fundamentals, then future economic developments in the face of climate change and, consequently, the future mitigation efforts will deviate from the optimal paths. In a quantitative assessment we show that with log-utility and under favorable technological and climatic conditions the abatement expenditure represents only 0.5% of output, equivalent to $37 per ton carbon. Under less favorable conditions, coupled with a relative risk aversion which exceeds unity, the abatement propensity increases to 2.9%, equivalent to $212 per ton carbon, and it jumps to a striking 16% in the pessimistic scenario involving severe shocks and low efficiency of abatement technology.
英文关键词	Climate policy; Uncertainty; Natural disasters; Endogenous growth; O10; Q52; Q54
语种	英语
WOS研究方向	Business & Economics ; Environmental Sciences & Ecology
WOS类目	Economics ; Environmental Studies
WOS记录号	WOS:001151677700001
来源期刊	ENVIRONMENTAL & RESOURCE ECONOMICS
文献类型	期刊论文
条目标识符	http://gcip.llas.ac.cn/handle/2XKMVOVA/297707
作者单位	University of Vienna; Swiss Federal Institutes of Technology Domain; ETH Zurich
推荐引用方式 GB/T 7714	Brausmann, Alexandra,Bretschger, Lucas. Escaping Damocles' Sword: Endogenous Climate Shocks in a Growing Economy[J],2024.
APA	Brausmann, Alexandra,&Bretschger, Lucas.(2024).Escaping Damocles' Sword: Endogenous Climate Shocks in a Growing Economy.ENVIRONMENTAL & RESOURCE ECONOMICS.
MLA	Brausmann, Alexandra,et al."Escaping Damocles' Sword: Endogenous Climate Shocks in a Growing Economy".ENVIRONMENTAL & RESOURCE ECONOMICS (2024).