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Distributional biases in the analysis of climate change

Peter Skott, University of Massachusetts - Amherst
Leila Davis

Abstract

The economic analysis of global warming is dominated by models based on optimal growth theory. These representative-agent models have an intrinsic distributional bias in favor of the rich. The bias is compounded by the se of revenue-neutrality in the allocation of emission permits. The result is mitigation recommendations that are biased downwards. JEL Categories: Q13, I3, E1

Suggested Citation

Peter Skott and Leila Davis. 2011. "Distributional biases in the analysis of climate change" Economics Department Working Paper Series
Available at: http://works.bepress.com/peter_skott/22



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