Risk aversion, time preference, and the social cost of carbon. Anthoff, D., Tol, R. S J, & Yohe, G. W Environmental Research Letters, 4(2):024002, April, 2009. ![Risk aversion, time preference, and the social cost of carbon [link]](https://bibbase.org/img/filetypes/link.svg "link")
Paper doi abstract bibtex The Stern Review reported a social cost of carbon of over $300/tC, calling for ambitious climate policy. We here conduct a systematic sensitivity analysis of this result on two crucial parameters: the rate of pure time preference, and the rate of risk aversion. We show that the social cost of carbon lies anywhere in between 0 and $120 000/tC. However, if we restrict these two parameters to matching observed behaviour, an expected social cost of carbon of $60/tC results. If we correct this estimate for income differences across the world, the social cost of carbon rises to over $200/tC.
@article{anthoff_risk_2009,
title = {Risk aversion, time preference, and the social cost of carbon},
volume = {4},
issn = {1748-9326},
url = {http://stacks.iop.org/1748-9326/4/i=2/a=024002?key=crossref.131261fbb77bd1050e655571d27b95f7},
doi = {10.1088/1748-9326/4/2/024002},
abstract = {The Stern Review reported a social cost of carbon of over \$300/tC, calling for ambitious climate policy. We here conduct a systematic sensitivity analysis of this result on two crucial parameters: the rate of pure time preference, and the rate of risk aversion. We show that the social cost of carbon lies anywhere in between 0 and \$120 000/tC. However, if we restrict these two parameters to matching observed behaviour, an expected social cost of carbon of \$60/tC results. If we correct this estimate for income differences across the world, the social cost of carbon rises to over \$200/tC.},
number = {2},
urldate = {2017-06-28},
journal = {Environmental Research Letters},
author = {Anthoff, David and Tol, Richard S J and Yohe, Gary W},
month = apr,
year = {2009},
keywords = {KR, Untagged},
pages = {024002},
}
Downloads: 0
{"_id":"Gj6i6wMqfPibeQx39","bibbaseid":"anthoff-tol-yohe-riskaversiontimepreferenceandthesocialcostofcarbon-2009","author_short":["Anthoff, D.","Tol, R. S J","Yohe, G. W"],"bibdata":{"bibtype":"article","type":"article","title":"Risk aversion, time preference, and the social cost of carbon","volume":"4","issn":"1748-9326","url":"http://stacks.iop.org/1748-9326/4/i=2/a=024002?key=crossref.131261fbb77bd1050e655571d27b95f7","doi":"10.1088/1748-9326/4/2/024002","abstract":"The Stern Review reported a social cost of carbon of over $300/tC, calling for ambitious climate policy. We here conduct a systematic sensitivity analysis of this result on two crucial parameters: the rate of pure time preference, and the rate of risk aversion. We show that the social cost of carbon lies anywhere in between 0 and $120 000/tC. However, if we restrict these two parameters to matching observed behaviour, an expected social cost of carbon of $60/tC results. If we correct this estimate for income differences across the world, the social cost of carbon rises to over $200/tC.","number":"2","urldate":"2017-06-28","journal":"Environmental Research Letters","author":[{"propositions":[],"lastnames":["Anthoff"],"firstnames":["David"],"suffixes":[]},{"propositions":[],"lastnames":["Tol"],"firstnames":["Richard","S","J"],"suffixes":[]},{"propositions":[],"lastnames":["Yohe"],"firstnames":["Gary","W"],"suffixes":[]}],"month":"April","year":"2009","keywords":"KR, Untagged","pages":"024002","bibtex":"@article{anthoff_risk_2009,\n\ttitle = {Risk aversion, time preference, and the social cost of carbon},\n\tvolume = {4},\n\tissn = {1748-9326},\n\turl = {http://stacks.iop.org/1748-9326/4/i=2/a=024002?key=crossref.131261fbb77bd1050e655571d27b95f7},\n\tdoi = {10.1088/1748-9326/4/2/024002},\n\tabstract = {The Stern Review reported a social cost of carbon of over \\$300/tC, calling for ambitious climate policy. We here conduct a systematic sensitivity analysis of this result on two crucial parameters: the rate of pure time preference, and the rate of risk aversion. We show that the social cost of carbon lies anywhere in between 0 and \\$120 000/tC. However, if we restrict these two parameters to matching observed behaviour, an expected social cost of carbon of \\$60/tC results. If we correct this estimate for income differences across the world, the social cost of carbon rises to over \\$200/tC.},\n\tnumber = {2},\n\turldate = {2017-06-28},\n\tjournal = {Environmental Research Letters},\n\tauthor = {Anthoff, David and Tol, Richard S J and Yohe, Gary W},\n\tmonth = apr,\n\tyear = {2009},\n\tkeywords = {KR, Untagged},\n\tpages = {024002},\n}\n\n\n\n","author_short":["Anthoff, D.","Tol, R. S J","Yohe, G. W"],"key":"anthoff_risk_2009","id":"anthoff_risk_2009","bibbaseid":"anthoff-tol-yohe-riskaversiontimepreferenceandthesocialcostofcarbon-2009","role":"author","urls":{"Paper":"http://stacks.iop.org/1748-9326/4/i=2/a=024002?key=crossref.131261fbb77bd1050e655571d27b95f7"},"keyword":["KR","Untagged"],"metadata":{"authorlinks":{}},"html":""},"bibtype":"article","biburl":"http://bibbase.org/zotero-group/ajello/2099979","dataSources":["EndJaSpcpPJCQnJDH"],"keywords":["kr","untagged"],"search_terms":["risk","aversion","time","preference","social","cost","carbon","anthoff","tol","yohe"],"title":"Risk aversion, time preference, and the social cost of carbon","year":2009}