Economic appraisal of carbon emitting projects and global warming
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Dosyalar
Tarih
2019
Yazarlar
Kula, Erhun İbrahim
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Centre for Japanese and East Asian Studies
Erişim Hakkı
info:eu-repo/semantics/embargoedAccess
Özet
This article focusses on how carbon emissions from various sources which contribute to the climate change are evaluated in economics. It has been argued by some economists that in cost-benefit analysis empirically based discount rates are too high wiping out distant environmental costs of many projects to the detriment of the environment. To this effect the British Government recommended %3.5 declining discount rate over time in the economic appraisal of projects and in this way, it has been claimed, future generations would not suffer from environmental externalities. Likewise Stern Review on climate change, published in 2006 which generated a good deal of controversy, also suggested the use of a low, but not declining, discount rate especially for projects with serious environmental consequences such as global warming. In this way the distant consequences of carbon emitting projects will have bearing in the current decision making process. This paper shows that neither Stern’s low discount rate nor the British Government’s declining figure will achieve their stated objectives because both like traditional models wipe out the environmental costs that will occur in the distant future. The paper instead recommends the use of intergenerational discounting criterion that places a substantial weight on future costs of all projects which are creating environmental externalities.
Açıklama
Anahtar Kelimeler
Carbon Emitting Projects, Economic Appraisal, Global Warming
Kaynak
Interdisciplinary Journal of Economics and Business Law
WoS Q Değeri
Scopus Q Değeri
Cilt
8
Sayı
1
Künye
Kula, E. (2019). Economic appraisal of carbon emitting projects and global warming. Interdisciplinary Journal of Economics and Business Law, 8(1), pp. 1-13.
