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Armon, Rezai ; Armon, Rezai ; Rick, van der Ploeg ; Frederick (Rick), van der Ploeg. (2014) Robustness of a Simple Rule for the Social Cost of Carbon.
In: CESifo Working Paper Series. RePEc:ces:ceswps:_4703.
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Population in 2010 (L1) is 6.5 billion people. Following Nordhaus (2008) and UN projections population growth is given by 0.35 8.6 2.1 t t L e− = − . Population growth starts at 1% per year and falls below 1% percent per decade within six decades and flattens out at 8.6 billion people. Without loss of generality the efficiency of labor 0.2 3 2 L t t A e− = − starts out with 1 1 L A = and an initial Harrod-neutral rate of technical progress of 2% per year. The efficiency of labor stabilizes at 3 times its current level. 3
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