Economic appraisal of carbon emitting projects and global warming

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Tarih

2019

Yazarlar

Kula, Erhun İbrahim

Dergi Başlığı

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Yayıncı

Centre for Japanese and East Asian Studies

Erişim Hakkı

info:eu-repo/semantics/embargoedAccess

Araştırma projeleri

Organizasyon Birimleri

Organizasyon Birimi
İnsan ve Toplum Bilimleri Fakültesi, İktisat Bölümü
İktisat Bölümü, başta Türkiye ve çevre ülkeler olmak üzere küresel ekonomileri anlayan, var olan sorunları analiz ederken, iktisadi kuramları ve kavramları yetkin ve özgün bir şekilde kullanma becerisine sahip bireyler yetiştirmeyi amaçlamaktadır.

Dergi sayısı

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.