Welfare as Equity Equivalents

Berger, Loϊc; Emmerling, Johannes

doi:10.1111/joes.12368

Cited by 13 publications

(8 citation statements)

References 64 publications

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“…However, growing concern about income inequality following high profile reports on the matter (e.g., Stigliz et al 2010), has led to a reconsideration of the appropriate SDR when there is aversion to intra-as well as inter-generational inequality. How inequality aversion affects the SDR via the SWF is discussed in Fleurbaey and Zuber (2015), Gollier (2015) and Berger and Emmerling (2020). The basic insight is illustrated by Emmerling et al (2017) in a simple extension of the Ramsey Rule.…”

Section: Intra-temporal Inequalitymentioning

confidence: 99%

The Future, Now: A Review of Social Discounting

Groom

Drupp

Freeman

et al. 2022

Annu. Rev. Resour. Econ.

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Governments across the world are coming under increasing pressure to invest heavily in projects that have maturities of decades or even centuries. Key areas of concern include climate change mitigation, environmental and biodiversity protection, nuclear decommissioning, enhancing infrastructure and coastal defenses, and long-term health care management. Whether such projects are evaluated as being economically justifiable depends on the social discount rate (SDR) that the government deploys. This variable converts the future costs and benefits of public policy into their value today, thereby facilitating the comparison of social investments with different maturities. Critically, the result of such analysis is extremely sensitive to small changes in the choice of the SDR, yet policy guidelines differ widely across countries and international institutions. In this article, we provide a review of the academic literature on long-term SDRs, with particular emphasis on how these insights have been integrated into governmental guidance. Expected final online publication date for the Annual Review of Resource Economics, Volume 14 is October 2022. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

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Section: Intra-temporal Inequalitymentioning

confidence: 99%

The Future, Now: A Review of Social Discounting

Groom

Drupp

Freeman

et al. 2022

Annu. Rev. Resour. Econ.

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“…We argue here that innovation research should make more systematic use of the theories and tools developed by welfare economics. This is a well‐established field of economics research that has a long tradition to investigate different ethical and philosophical principles that provide the foundations for policy choices, and particularly to discuss how these different principles address relationships and trade‐offs between efficiency and equity (Adler & Fleurbaey, 2016; Berger & Emmerling, 2020). By drawing insights from welfare economics, innovation studies will strengthen the scholarly knowledge base that it is necessary in order to provide clearer analytical foundations and a stronger rationale for R&D and innovation policy.…”

Section: A New Research Agendamentioning

confidence: 99%

Innovation and social welfare: A new research agenda

Castellacci

2022

Journal of Economic Surveys

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Innovation research is motivated by the understanding that innovation contributes to address societal challenges and foster welfare. Extant research in this field has however adopted a rather narrow definition of social welfare, which focuses on economic performance and material wellbeing, and that mostly disregards distributional impacts of innovation. This paper outlines a new research agenda that will investigate the impacts of innovation on individuals' well-being and aggregate social welfare. The new research program has two major pillars. First, it adopts a broader notion of agents' well-being that comprises also non-economic factors and capabilities alongside income and material wealth. Second, it argues that welfare analyses of innovation must explicitly take into account equity and social justice in addition to efficiency and economic performance. This new research agenda opens up several novel questions for future innovation research and policy-making, pointing to the existence of trade-offs and dilemmas between efficiency and equity, and between short-and long-run impacts of innovation on social welfare.

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“…RICE50+ is an open-source highly regionalized Integrated assessment model 18 Each planner solves an intertemporal maximization problem of discounted consumption, and the utility function explicitly includes inequality aversion other than intertemporal 27 . Different baseline projections of socio-economic determinants are represented with the Shared Socioeconomic Pathways (SSP) as well as different impact functions from recent econometric literature such as Burke et al 22 and Kalkuhl et al 29 .…”

Section: Modelmentioning

confidence: 99%

Inequality repercussions of financing negative emissions

Andreoni

Emmerling

Tavoni³

2022

Preprint

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Negative emission technologies are attracting the interest of investors in the race to make them effective and profitable. When deployed at scale, negative emissions will need to be financed through carbon tax revenues or issuing other taxes. Financing negative emissions could thus reduce the fiscal resources needed for a socially inclusive transition. Moreover, if negative emissions are privately owned their profits will disproportionally benefit investors and equity holders. We quantify the inequality repercussions of negative emission through an integrated assessment model which features within-country income heterogeneity and direct air capture of CO2. We find that negative emissions technologies deployed by private actors contribute to more than half of the increase in income inequality observed in a 1.5°C scenario. The effects are concentrated around the time of net-zero and are higher in scenarios with carbon budget overshoot. We attribute regional variations to two main mechanisms, the revenue drying and private ownerships effects of negative emissions.

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Welfare as Equity Equivalents

Cited by 13 publications

References 64 publications

The Future, Now: A Review of Social Discounting

The Future, Now: A Review of Social Discounting

Innovation and social welfare: A new research agenda

Inequality repercussions of financing negative emissions

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