The Optimal Growth under Catastrophic Climate Change of Far Distant Future

Meng Shen

doi:10.4028/www.scientific.net/AMR.1073-1076.2836

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Analysis on Economic Efficiency and Industrial Structure Adjustment of Some Counties Based on DEA Method
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Chinese Mid-Long Term Energy Demand Analysis under the Environmental Constraints
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HomeAdvanced Materials ResearchAdvanced Materials Research Vols. 1073-1076The Optimal Growth under Catastrophic Climate...

The Optimal Growth under Catastrophic Climate Change of Far Distant Future

Abstract:

Economic theory has two difficulties to deal with catastrophic climate change events: 1) the impacts are so high that may damage the whole civilization, 2) the impact could only be realized in the far distant future. Discounted utilitarianism fail to explain why society would be willing to prevent catastrophes that could only happen in the far distant future. This paper proves that Chichilnisky’s social welfare criterion could be applied for the issue of catastrophic climate change. Applying this criterion to an “AK” economy with abatement technology, I examine the effects of catastrophic risk on growth and welfare.

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Periodical:

Advanced Materials Research (Volumes 1073-1076)

Pages:

2836-2842

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.1073-1076.2836

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Online since:

December 2014

Authors:

Meng Shen*

Keywords:

Catastrophic Risk, Chichilnisky’s Axioms, Climate Change, Maximum Principle

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* - Corresponding Author

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