Climate Policy Under Intergenerational Discounting ― An Application of the Dynamic Integrated Climate-economy Model

In this thesis, Orlando Zaddach applies a discounting scheme derived by Krysiak (2010) in the latest DICE model and presents its implications for optimal climate policy. Furthermore, he carries out a one-factor-at-a-time (OFAT) sensitivity analysis to check the discounting scheme for robustness. It turns out that the proposed discounting scheme fails in incorporating consumer sovereignty and intergenerational equity sufficiently.

Jonathan Orlando Zaddach studied economics at the Albert-Ludwigs-University of Freiburg and wrote his master thesis at the Department for International Economic Policy under the supervision of Prof. Dr. Gunther G. Schulze. His second supervisor was Prof. Dr. Frank C. Krysiak from the University of Basel. Currently he is working on his PhD thesis at the Chair of Public Finance, Friedrich-Alexander-University Erlangen-Nurnberg.