Publications by Year: 2010

Weitzman M, Gollier C. How Should the Distant Future be Discounted When Discount Rates are Uncertain?. Economic Letters. 2010;107 (3) :350-353.Abstract

It is not immediately clear how to discount distant-future events, like climate change, when the distant-future discount rate itself is uncertain. The so-called “Weitzman-Gollier puzzle” is the fact that two seemingly symmetric and equally plausible ways
of dealing with uncertain future discount rates appear to give diametrically opposed results with the opposite policy implications. We explain how the “Weitzman-Gollier puzzle” is resolved. When agents optimize their consumption plans and probabilities
are adjusted for risk, the two approaches are identical. What we would wish a reader to take away from this paper is the bottom-line message that the appropriate long run discount rate declines over time toward its lowest possible value.

Weitzman M. Some Dynamic Economic Consequences of the Climate Sensitivity Inference Dilemma. In: Aronsson, Lofgren Handbook of Environmental Accounting. Edward Elgar ; 2010. pp. Chapter 8. somedynamiceconomicconsequences.pdf
Weitzman M. What is the "Damages Function‟ for Global Warming – and What Difference Might it Make?. Climate Change Economics. 2010;1 (1) :57-69. damagesfunctionglobalwarming.pdf
Weitzman M. Risk-Adjusted Gamma Discounting. Journal of Environmental Economics and Management. 2010;60 :1-13. riskadjustedgammadiscounting.pdf
Weitzman M. Book Review of Bjorn Lomborg‟s Smart Solutions to Climate Change: Comparing Costs and Benefits. Nature [Internet]. 2010;467 (7317) :784-785. Publisher's Version