Working Paper Number
The economic analysis of global warming is dominated by models based on optimal growth theory. These representative-agent models have an intrinsic distributional bias in favor of the rich. The bias is compounded by the se of revenue-neutrality in the allocation of emission permits. The result is mitigation recommendations that are biased downwards.
Skott, Peter and Davis, Leila, "Distributional biases in the analysis of climate change" (2011). Economics Department Working Paper Series. 130.