Temporal discounting is a technical operation in climate change economics. When discount rates are positive, economic evaluation treats future benefits as less important than equivalent present benefits. This chapter explains and critically evaluates four different reasons economists have given for tying discount rates to the interest rates we observe in real-world markets. I suggest that while philosophers have correctly criticized three of these reasons, their criticisms of the fourth miss the mark. This is because philosophers have not taken heed of (...) the distinct analytical framework in which the fourth reason arises. (shrink)

It is often claimed that reducing population size would be advantageous for climate change mitigation, on the grounds that lower population would naturally correspond to lower emissions. This apparently obvious claim is in fact seriously misleading. Reducing population size would indeed, other suitable things being equal, reduce the emissions rate. But it is well recognised that the primary determinant of the eventual amount of climate change is not the emissions rate, but rather cumulative emissions. It is far less clear whether (...) reducing population size would reduce cumulative emissions, or would in any other way prove an advantage for reasons related to climate change. This paper identifies and briefly discusses the issues relevant to assessing that less clear question. (shrink)

We analyze the role of ethical values in the determination of the social cost of carbon, arguing that the familiar debate about discounting is too narrow. Other ethical issues are equally important to computing the social cost of carbon, and we highlight inequality, risk, and population ethics. Although the usual approach, in the economics of cost-benefit analysis for climate policy, is confined to a utilitarian axiology, the methodology of the social cost of carbon is rather flexible and can be expanded (...) to a broader set of social-welfare approaches. [Open access]. (shrink)

This article is a critical survey of the debate over the value of the social discount rate, with a particular focus on climate change. The ma- jority of the material surveyed is from the economics rather than from the philosophy literature, but the emphasis of the survey itself is on founda- tions in ethical and other normative theory rather than highly technical details. I begin by locating the standard approach to discounting within the overall landscape of ethical theory, and explaining (...) the assumptions and simplifications that are needed in order to arrive at the model that is standard in the discounting literature. The article then covers the general theory of the Ramsey equation and its relationship to observed interest rates, arguments for and against a positive rate of pure time preference, the consumption elasticity of utility, and the effect of various sorts of uncertainty on the discount rate. Finally, it turns specifically to the ap- plication of this debate to the case of climate change, focussing on the recent controversy over the low discount rate used in the Stern Review of the Economics of Climate Change. (shrink)

This paper proposes a systematic framework for the analysis of tensions in corporate sustainability. The framework is based on the emerging integrative view on corporate sustainability, which stresses the need for a simultaneous integration of economic, environmental and social dimensions without, a priori, emphasising one over any other. The integrative view presupposes that firms need to accept tensions in corporate sustainability and pursue different sustainability aspects simultaneously even if they seem to contradict each other. The framework proposed in this paper (...) goes beyond the traditional triad of economic, environmental and social dimensions and argues that tensions in corporate sustainability occur between different levels, in change processes and within a temporal and spatial context. The framework provides vital groundwork for managing tensions in corporate sustainability based on paradox strategies. The paper then applies the framework to identify and characterise four selected tensions and illustrates how key approaches from the literature on strategic contradictions, tensions and paradoxes—i.e., acceptance and resolution strategies—can be used to manage these tensions. Thereby, it refines the emerging literature on the integrative view for the management of tensions in corporate sustainability. The framework also provides managers with a better understanding of tensions in corporate sustainability and enables them to embrace these tensions in their decision making. (shrink)

Transparency and openness are broadly endorsed in energy and environmental modelling and analysis, but too little attention is given to the transparency of value-laden assumptions. Current practices for transparency focus on making model source code and data available, documenting key equations and parameter values, and ensuring replicability of results. We argue that, even when followed, these guidelines are insufficient for achieving deep transparency, in the sense that results often remain driven by implicit value-laden assumptions that are opaque to other modellers (...) and researchers, and that may not be understood by wider audiences to be controversial. This paper identifies additional best practices for achieving transparency by highlighting issues where disagreement over value judgements will persist for the foreseeable future. Recommendations for deepening transparency are developed by learning from successes and ongoing challenges represented in three case studies. We provide recommendations to accelerate the adoption of additional best practices for deepening transparency of energy and environmental modelling in policy-relevant domains, increasing stakeholder participation with non-modellers, and encouraging interdisciplinary dialogue. (shrink)

In this article I argue that governments are justified in addressing the potential for human induced climate damages on the basis of future generations' rights to bodily integrity and personal property. First, although future generations' entitlements to property originate in our present entitlements, the principle of self-ownership requires us to take 'reasonable care' of the products of future labour. Second, while Parfit's non-identity problem has as yet no satisfactory solution, the present absence of an equilibrium between theory and intuitions justifies (...) a precautionary approach, i.e. treating climate damage as a wrongful harm. In addition, a supplementary consideration is described as arising from transcendental needs. (shrink)

ABSTRACT:In this article, we review and build on intergenerational and behavioral ethics research to consider how the motive to build a lasting legacy can impact ethical behavior in intergenerational decision making. We discuss how people can utilize their relationships to organizations to craft their legacies. Further, we elucidate how the legacy motive can enhance business ethics, incorporating theory and empirical findings from research on intergenerational decision making, generativity, and terror management theory to develop the legacy construct and to outline the (...) psychological underpinnings of motivations to leave a positive legacy. We discuss the ways in which legacies can provide a link between life-meaning and pro-social motivation, and we consider the ways in which individuals’ social environments can moderate the intensity of the legacy motive and can impact legacy-building behavior by determining the types of legacies that are valued. Finally, we highlight the implications of these ideas for ethical behavior and sustainable decision making in business contexts. (shrink)

In six experiments, we investigated the role of resource valence in intergenerational attitudes and allocations. We found that, compared to benefits, allocating burdens intergenerationally increased concern with one’s legacy, heightened ethical concerns, intensified moral emotions (e.g., guilt, shame), and led to feelings of greater responsibility for and affinity with future generations. We argue that, because of greater concern with legacies and the associated moral implications of one’s decisions, allocating burdens leads to greater intergenerational generosity as compared to benefits. Our data (...) provide support for this effect across a range of contexts. Our results also indicate that the differential effect of benefits versus burdens in intergenerational contexts depends on the presence of two important structural characteristics that help enact concerns about legacies, including (1) future impact of decisions, and (2) a self-other tradeoff. Overall, our findings highlight how considering resource valence brings to the fore a number of key psychological characteristics of intergenerational decisions—especially as they relate to legacies and ethics. (shrink)

I discuss three families of methodologies that could be used to assign values to the normative parameters relevant to social discounting in welfare economics generally, and climate economics more specifically. First, I argue that in particular circumstances, there cannot be philosophical argumentation for normative questions; specifically, this occurs when the particular values being sought are both non-critical and from a quantitative range. Second, I argue that social preferences are insufficient if we take the problem to be normative and that proposals (...) for informed social preferences face significant challenges in implementation. Finally, I argue in favour of expert elicitation for experts in welfare economics, construed as those who understand the theoretical implications of adopting particular judgments. Those who understand the theoretical implications of adopting particular judgments will be better placed to develop coherent social plans while integrating relevant empirical data. (shrink)