IDEAS home Printed from https://ideas.repec.org/a/cup/endeec/v12y2007i02p183-211_00.html
   My bibliography  Save this article

Intergenerational cost–benefit analysis of climate change: an endogenous abatement approach

Author

Listed:
  • KAVUNCU, Y. OKAN

Abstract

This paper studies the intergenerational welfare effects of climate change and a control policy within a decentralized overlapping generations framework, including endogenous abatement activities. The model incorporates a profit stimulated R&D with realistic market distortions to create an induced innovation structure. In this setting, a control policy has the dual role of discouraging emissions and triggering new abatement technologies. The results from numerical simulations show that the omission of entrepreneurial response to a control policy is likely to result in overestimation of costs associated with this particular policy. Although induced innovation has the potential to reduce the compliance costs with the control policy, current and near-future generations will bear some net costs. The higher the damage projected from climate change, the earlier the net benefit will arrive.

Suggested Citation

  • Kavuncu, Y. Okan, 2007. "Intergenerational cost–benefit analysis of climate change: an endogenous abatement approach," Environment and Development Economics, Cambridge University Press, vol. 12(2), pages 183-211, April.
    • Handle: RePEc:cup:endeec:v:12:y:2007:i:02:p:183-211_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1355770X06003469/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Voyvoda, Ebru, 2013. "Energy-Economy-Environment Interaction Using OLG Framework: Evaluation of Alternative Policies under Demographic Transition," Conference papers 332376, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Da Rocha, José María & Gutiérrez Huerta, María José & Villasante, Sebastián, 2013. "Economic Effects of Global Warming under Stock Growth Uncertainty: The European Sardine Fishery," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:endeec:v:12:y:2007:i:02:p:183-211_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/ede .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.