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Demographic change and climate change

Published online by Cambridge University Press:  27 November 2019

Michael Rauscher Open the ORCID record for Michael Rauscher [Opens in a new window]
Michael Rauscher*
Affiliation:
Universität Rostock, Institut für VWL, Rostock, Germany Ifo-Institut, München, Germany
*
*Corresponding author. E-mail: michael.rauscher@uni-rostock.de
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Abstract

This 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.

Keywords

climate changedemographic changeendogenous growthenvironmental policymortality and longevity
Type
Research Article
Information
Environment and Development Economics , Volume 25 , Special Issue 1: The Economics of Climate Change and Sustainability (Part B) , February 2020 , pp. 5 - 20
Copyright
Copyright © Cambridge University Press 2019

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