Numerical analysis of non-constant pure rate of time preference: A model of climate policy

• Main Authors: FUJII, Tomoki, KARP, Larry
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2008
• Subjects: non-constant pure rate of time preference; hyperbolic discounting; numerical methods; non-renewable resources; observational equivalence; climate change; Stern Review; Environmental Sciences; Environmental Studies; Public Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2143; https://ink.library.smu.edu.sg/context/soe_research/article/3143/viewcontent/JEEM_numerical_climate_2008.pdf
• Institution: Singapore Management University

When current decisions affect welfare in the far-distant future, as with climate change, the use of a declining pure rate of time preference (PRTP) provides potentially important modeling flexibility. The difficulty of analyzing models with non-constant PRTP limits their application. We describe and...