Green bonds, transition to a low-carbon economy, and intertemporal welfare allocation: Evidence from an extended DICE model

19983 6 107438 2 325846 document 107438 Environ-11-04-031.pdf application/pdf dce2162017331db26d734e3db724666f MD5 739061 2024-09-13 14:30:12 https://pure.iiasa.ac.at/id/eprint/19983/1/Environ-11-04-031.pdf 19983 1 1 application/pdf text en public cc_by_4

Environ-11-04-031.pdf

published 107439 1 325852 document 107439 indexcodes.txt text/x-asm 4def331ec5f3e666a8137b183da08174 MD5 13541 2024-09-13 14:39:35 https://pure.iiasa.ac.at/id/eprint/19983/2/indexcodes.txt 19983 2 2 text/x-asm other Generate index codes conversion from text to indexcodes en public

indexcodes.txt

lightbox.jpg

preview.jpg

medium.jpg

small.jpg

http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/107438 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/107438 http://eprints.org/relation/issmallThumbnailVersionOf https://pure.iiasa.ac.at/id/document/107438 archive 353 disk0/00/01/99/83 2024-09-13 14:32:49 2024-09-13 14:32:49 2024-09-13 14:32:49 article show Orlov S. 8841 Rovenskaya E. 8206 0000-0002-2761-3443 Puaschunder J. 8980 Semmler W. 8946 Green bonds, transition to a low-carbon economy, and intertemporal welfare allocation: Evidence from an extended DICE model pub ASA EM climate change mitigation, green bonds, intertemporal welfare allocation, welfare optimization, DICE model Short-term reductions in social welfare, expected to be caused by a currently imposed carbon tax, are among the obstacles to a rapid transition to a low-carbon economy. Using an extended DICE model, we studied the potential of green bonds to both accelerate this transition and smoothen welfare losses and gains in a socially optimal way. We showed that green bonds can indeed accelerate the transition to a low-carbon economy and that lower interest rates on bonds speed up this acceleration. Moreover, bonds can reduce short-term welfare losses; however, to eliminate welfare losses, additional compensation mechanisms are needed. For example, bonds at a 3% interest rate can decrease the peak atmospheric carbon concentrations by about 20% and shorten the initial time, during which society is worse off from 75 to 45 years. Retaining at least the same consumption level as in the no-mitigation scenario, without using bonds, is possible only through a decrease in abatement efforts. Green bonds of sufficiently low interest rates allow improving intertemporal welfare as well as achieving a more pronounced climate change mitigation with respect to both mitigation and no-mitigation scenarios without bonds. 2024-08 published doi:10.3934/environsci.2024031 220 260 2805 2863 public AIMS Environmental Science 11 4 628-648 TRUE 2372-0352 no info:eu-repo/semantics/article