Intergenerational transfers key to reducing climate change impact.
The article explores how discounting and sharing welfare between different generations affect climate change response plans. By using a model that considers realistic demographic factors, researchers found that adjusting income transfers between generations can lead to better outcomes for everyone. They discovered that increasing support between generations can lower discount rates and boost efforts to reduce greenhouse gas emissions. The study also revealed that short-term decisions on climate policies heavily depend on how much importance is given to the well-being of future generations.