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Demographic change and climate change

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  • Rauscher, Michael

Abstract

The paper uses a continuous-time overlapping-generations model with endogenous growth and pollution accumulation over time to study the link between longevity and global warming. It is seen that increasing longevity accelerates climate change in a business-as-usual scenario without climate policy. If a binding emission target is set exogenously and implemented via a cap-and-trade system, the price of emission permits is increasing in longevity. Longevity has no effect on the optimal solution of the climate problem if perfect intergenerational transfers are feasible. If these transfers are absent, the impact of longevity is ambiguous.

Suggested Citation

  • Rauscher, Michael, 2019. "Demographic change and climate change," Thuenen-Series of Applied Economic Theory 160, University of Rostock, Institute of Economics.
    • Handle: RePEc:zbw:roswps:160
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    References listed on IDEAS

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    Cited by:

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