| Author: | Azar, C. |
| Title: | Weight factors in cost-benefit analysis of climate change |
| Journal: | Environmental and Resource Economics
1999 : APR, VOL. 13:3, p. 249-268 |
| Index terms: | ENVIRONMENT CHANGE ECONOMICS |
| Language: | eng |
| Abstract: | Equity considerations may justify the use of weight factors when estimating the costs of climate change. This paper reviews different weight factors that have been used in the climate economics literature. Based on a simple model, it is shown that although the different weight factors imply substantially different cost-damage estimates, they actually yield the same optimal emission reductions. This paradox is explained by the fact that some of the approaches require that also the abatement costs are weighted -- and this offsets the effects of the diverging cost-damage estimates. |
SCIMA