December 2011
Intermediate to advanced
470 pages
16h 40m
English
Content preview from Climate Management Issues
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332 Climate Management Issues
• Consumption levels will be higher in the future, so the marginal
utility of additional consumption will be lower.
• Future consumption levels are uncertain.
• Improved technology of the future will make it easier to address
climate change concerns.
Using a high discount rate decreases the assessed benet of actions designed
to reduce greenhouse gas emissions. The Stern Review’s discount rate for
climate change damages is approximately 1.4 percent, which was lower than
that used in most previous studies on climate change damages.
Her Majesty’s (HM) Treasury has issued a document where several econo-
mists are quoted praising the Stern Review; it includes favorable reviews writ-
ten by Robert Solow, James Mirr ...
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