Müller-Fürstenberger, Georg; Stephan, Gunter (May 2010). What Really Matters: Discounting, Technological Change and Sustainable Climate (Discussion Papers 10-08). Bern: Department of Economics
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This paper discusses the interplay between the choice of the discount rate, greenhouse gas
mitigation and endogenous technological change. Neglecting the issue of uncertainty it is
shown that the green golden rule stock of atmospheric carbon is uniquely determined, but is
not affected by technological change. More general it is shown analytically within the
framework of a reduced model of integrated assessment that optimal stationary stocks of
atmospheric carbon depend on the choice of the discount rate, but are independent of the
stock of technological knowledge. These results are then reinforced numerically in a fully
specified integrated assessment analysis.
Item Type: |
Working Paper |
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Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Economics |
UniBE Contributor: |
Müller-Fürstenberger, Georg, Stephan, Gunter |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
Series: |
Discussion Papers |
Publisher: |
Department of Economics |
Language: |
English |
Submitter: |
Lars Tschannen |
Date Deposited: |
15 Oct 2020 10:52 |
Last Modified: |
05 Dec 2022 15:39 |
JEL Classification: |
Q40, O13 |
BORIS DOI: |
10.7892/boris.145729 |
URI: |
https://boris.unibe.ch/id/eprint/145729 |
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