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Tackling the Stiglitz Report: Measuring Social Progress and Economic Performance under Various Climate Policy Scenarios

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DOI: 10.4236/me.2019.1011139    70 Downloads   143 Views

ABSTRACT

This paper attempts to connect the measurement of social progress from the Stiglitz report and climate change mitigation (CCM) by the Intergovernmental Panel on Climate Change (IPCC) assessment reports. Each report has been addressed insufficiently on the issue, although both reports have common interests in development patterns and pathways for the economy, humanity, and society. This study used our original integrated assessment model and applied for measuring various indicators for sustainable development, such as genuine savings (known as GS) and human appropriation of net photosynthetic primary production (HANPP). We expanded an analysis of sustainable development indicators of quality of life (QoL) and of the human development index (HDI) and introduced a modified quality of life indicator. These indicators expand on the “classical” GDP loss, which has been well analyzed in the majority of CCM literature. Our model’s main framework is based on the Regional Integrated model of Climate and the Economy (RICE) extended from Ramsey-Cass-Koopmans with a simplified climate model and added three original resource balance models with environmental consequences with a life cycle impact assessment (LCIA) model. We prepared various climate policy scenarios ranging from business as usual to economically efficient, CO2 double stabilization, and targeting two degrees Celsius (DC). We believe this work has three contributions. First, in contrast with the World model by the Limits to Growth, our model has an economic foundation where genuine savings is introduced. Second, while the Stiglitz report only extrapolates the current genuine savings trend, we are able to calculate the future trajectories of sustainable development indicators, based on a sophisticated integrated assessment model. Third, when compared to the RICE analysis, which sought the optimal climate policy in the sense of cost-benefit analysis, our model introduces indicators of sustainable development in assessing climate policies.

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Tokimatsu, K. , Yasuoka, R. and Nishio, M. (2019) Tackling the Stiglitz Report: Measuring Social Progress and Economic Performance under Various Climate Policy Scenarios. Modern Economy, 10, 2209-2231. doi: 10.4236/me.2019.1011139.

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