Accéder directement au contenu Accéder directement à la navigation
Pré-publication, Document de travail

WILLINGNESS TO PAY OF AN EXPO-POWER UTILITY DECISION MAKER TO LIMIT CLIMATE CHANGE

Abstract : This paper extends the work of Pindyck by taking into consideration a large class family of different utility functions of economic agents. As in Pindyck, instead of consideringa social utility function that is characterized by constant relative risk aversion (C.R.R.A), we use the expo-power utility function of Saha. In fact, depending on the choice of the expo-power utility function parameters, we cover a diverse range1of utility functions and besides covering the other utility functions that a C.R.R.A omits, Expo-power function permits usto discern if under the other behaviors of economic agents, the willingness to pay remainsmore affected by uncertain outcomes than certain outcomes, when we vary the expectationand standard deviation of the temperature distribution probability. Our paper has maintained the small-tailed gamma distributions of temperature and economic impact of Pindyck, notonly because they hinder infinite future welfare losses (for an exponential utility function), but because it is easy to change some moments of the distribution (jointly or holding the othersfixed) while studying how uncertainty influences the willingness to pay as explained in Pindyck.
Type de document :
Pré-publication, Document de travail
Liste complète des métadonnées

Littérature citée [20 références]  Voir  Masquer  Télécharger

https://hal.umontpellier.fr/hal-02465195
Contributeur : Mélanie Karli <>
Soumis le : lundi 3 février 2020 - 17:10:02
Dernière modification le : mercredi 5 février 2020 - 14:52:50
Archivage à long terme le : : lundi 4 mai 2020 - 17:19:40

Fichier

Sadefo_09.pdf
Fichiers produits par l'(les) auteur(s)

Identifiants

  • HAL Id : hal-02465195, version 1

Collections

Citation

Jules Sadefo Kamdem, David Akame. WILLINGNESS TO PAY OF AN EXPO-POWER UTILITY DECISION MAKER TO LIMIT CLIMATE CHANGE. 2020. ⟨hal-02465195⟩

Partager

Métriques

Consultations de la notice

119

Téléchargements de fichiers

216