Investigation of Intergenerational Equity on Global Warming and Economic Growth With Emphasis on the Role of Rate of Time Preference (Case Study: Middle East and North Africa)

Global warming or climate change is one of the disaster of industrial development that damages present and future generation. Since the climate change is a long-run phenomenon, in its study inter-time issues such as intergenerational equity are discussed. Also the relationship between global warming and economic growth can be studied. The main question is whether efforts to achieve intergenerational equity can lead to slowing global warming and boost economic growth? The major focus researchers on time preference rate as one of the factors influencing the intergenerational equity. To answer the research question the Dynamic Integrated Climate-Economic model (DICE) is used. Four scenarios for the first time with a focus on time-preference rate compared with the baseline scenario by researcher, that the positive effects of intergenerational equity (reducing the time preference) on slowing global warming and strengthen economic growth has been proven. As a lateral result in this paper prove that static policy based on a time and regardless of the dynamics of the rate of time preference, can fail at some point of time. So it is necessary for policy makers to develop a dynamic policy regulations apply instead of cross policies.