FEEM working papers "Note di lavoro" series
2000 .098

Reaching National Kyoto-Targets in Germany by Maintaining a Sustainable Development


Authors: Stefan Bayer, Claudia Kemfert
Series: Climate Change and Sustainable Development
Editor: Carlo Carraro
Type: Journal
Keywords: OLG-models,discounting,sustainability,climate change,Kyoto targets
JEL n.: D58,D61,Q28,Q38,Q48
JEL: Environment, Development and Sustainability

Abstract

Within this paper, we analyse the fulfilment of the Kyoto-emissions reduction com-mitment exemplary in Germany and its implication on long-term paths of all macro-variables. Germany, like all other industrial or Annex B coun-tries, has to reduce its emissions by 2010 and after what we call a "Kyoto-forever-scenario". We exemplary investigate tradable permits as reduction measures in a national OverLapping Generations (OLG)-model, where we change the discounting technique by using generation adjusted discounting (GAD) in comparison to conventional OLG-models. We show that within our model-framework Germany is able to develop along growing paths of e.g. GDP in sharp contrast to conventional results of OLG-simulations. At the same time, nowadays living generations have to share higher burdens in terms of lower GDP, per capita consumption and employment which can be interpreted, firstly, as contemporary costs for reaching sustainable paths and, secondly, contributions for internalising intertemporal external effects. However, all costs in terms of lower macro-variables for current living generations are overcompensated by higher future values of them. This effect can be interpreted as intertemporal application of full cost-bearance, or, in other words, the polluter pay principle which is oriented on the sustainability of GHG abatement.

Download file
Download PDF file

FEEM Newsletter

Subscribe to stay connected.

Your personal data will be processed by Fondazione Eni Enrico Mattei. – data Controller – with the aim of emailing the FEEM newsletter. The use of Your email address is necessary for the implementation of the newsletter service. You are invited to read the Privacy Policy in order to obtain additional information about the protection of Your rights.

This Website uses technical cookies and cookie analytics, as well as “third party” profiling cookies.
If you close this banner or you decide to continue navigating on this Website, you express consent to the use of cookies. If you need additional information or you wish to express selective choices on the use of cookies, please refer to the   Cookie PolicyI agree