Scandinavian Working Papers in Economics
Memorandum,
Oslo University, Department of Economics
No 09/2016: Intergenerational altruism: A solution to the climate problem?*
Frikk Nesje () and Geir Asheim ()
Additional contact information
Frikk Nesje: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Geir Asheim: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Abstract: The future effects of climate change may induce increased intergenerational altruism. But will increased intergenerational altruism reduce the threat of climate change? In this chapter we investigate this question. In a second-best setting with insufficient control of greenhouse gas emissions in the atmosphere, increased transfers to future generations through accumulation of capital might result in additional accumulation of greenhouse gases, and thereby aggravate the climate problem. In contrast, transfers to the future through control of greenhouse gas emissions will alleviate the climate problem. Whether increased intergenerational altruism is a means for achieving accumulation of consumption potential (through accumulation of capital) without increasing the climate threat depends on how it affects factors motivating the accumulation of capital and the control of emissions of greenhouse gases. An argument is provided for why increased intergenerational altruism in fact will aggravate the climate problem. We use the models of Jouvet et al. (2000), Karp (forthcoming) and Asheim and Nesje (forthcoming) to facilitate the discussion.
Keywords: Intergenerational altruism; climate change
20 pages, September 11, 2016
Full text files
memo-09-2016.pdf
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