Major Papers

Keywords

Environment, temperature anomalies, green golden rule

Abstract

The goal of this paper is to analyse the impact of temperature changes on the green golden rule. The green golden rule is the maximization of consumer utility based on consumer preference between consumption and environmental stock. The trade-off between environmental stock and consumption which is found to be negative. With temperature change being very prevalent in our era, we look at temperature change in the form of a damage function. By looking at both an increasing and decreasing damage function, along with changing variables in the green golden rule, we see that when the average global temperature deviates from the mean, be it above or below the mean, there is a decrease or increase in the damage function respectively.

Primary Advisor

Marcelo Arbex

Program Reader

Christian Trudeau

Degree Name

Master of Arts

Department

Economics

Document Type

Major Research Paper

Convocation Year

2020

Available for download on Sunday, January 31, 2021

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