
handle: 10419/93437
This paper examines the socially optimal pricing of carbon emissions over time when climate-change impacts are unknown, potentially high-consequence events. The carbon price tends to increase with income. But learning about impacts, or their absence, decouples the carbon price from income growth. The price should grow faster than the economy if the past warming is not substantial enough for learning the true long-run social cost. It grows slower than the economy as soon as the warming generates information about events that could have arrived but have not done so. A quantitative assessment shows that the price grows roughly at the rate of the economy for the next 100 years.
carbon price, tipping point, carbon price, learning, climate change, D91, SDG 13 - Climate Action, learning, ta511, Q54, ddc:330, SDG 8 - Decent Work and Economic Growth, D61, climate change, H41, H43, E21, jel: jel:D61, jel: jel:E21, jel: jel:H41, jel: jel:H43, jel: jel:D91, jel: jel:Q54
carbon price, tipping point, carbon price, learning, climate change, D91, SDG 13 - Climate Action, learning, ta511, Q54, ddc:330, SDG 8 - Decent Work and Economic Growth, D61, climate change, H41, H43, E21, jel: jel:D61, jel: jel:E21, jel: jel:H41, jel: jel:H43, jel: jel:D91, jel: jel:Q54
| selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | 72 | |
| popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network. | Top 10% | |
| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Top 10% | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Top 10% |
