Climate policy with Bentham-Rawls preferences

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

A Bentham-Rawls welfare function is the weighted sum of the net present welfare (Bentham) and the welfare of the worst-off generation (Rawls). If utility is non-decreasing over time, optimal climate policy is more stringent in the near-term under the Bentham criterion than under the Bentham-Rawls criterion. If utility is decreasing, Bentham-Rawls abatement is higher. If there is a chance of decreasing utility, Bentham-Rawls optimal climate policy is probably less stringent than Bentham policy.

Original languageEnglish
Pages (from-to)424-428
Number of pages5
JournalEconomics Letters
Volume118
Issue number3
DOIs
Publication statusPublished - Mar 2013

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Climate policy
Abatement
Welfare function

Keywords

  • Bentham-Rawls criterion
  • Climate policy
  • Social cost of carbon

Cite this

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abstract = "A Bentham-Rawls welfare function is the weighted sum of the net present welfare (Bentham) and the welfare of the worst-off generation (Rawls). If utility is non-decreasing over time, optimal climate policy is more stringent in the near-term under the Bentham criterion than under the Bentham-Rawls criterion. If utility is decreasing, Bentham-Rawls abatement is higher. If there is a chance of decreasing utility, Bentham-Rawls optimal climate policy is probably less stringent than Bentham policy.",
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Climate policy with Bentham-Rawls preferences. / Tol, Richard S.J.

In: Economics Letters, Vol. 118, No. 3, 03.2013, p. 424-428.

Research output: Contribution to JournalArticleAcademicpeer-review

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AB - A Bentham-Rawls welfare function is the weighted sum of the net present welfare (Bentham) and the welfare of the worst-off generation (Rawls). If utility is non-decreasing over time, optimal climate policy is more stringent in the near-term under the Bentham criterion than under the Bentham-Rawls criterion. If utility is decreasing, Bentham-Rawls abatement is higher. If there is a chance of decreasing utility, Bentham-Rawls optimal climate policy is probably less stringent than Bentham policy.

KW - Bentham-Rawls criterion

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KW - Social cost of carbon

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