Natural Resource Economics Commons^™

A Warmer, Green Golden Rule, Kyle James Stuart

Major Papers

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 …