Fig. 5: The influence of social preferences on the growth effects and income losses.
From: Investment incentive reduced by climate damages can be restored by optimal policy
Depicted are (relative to the income without climate change) the shares of (a) the total income losses; b the income losses caused through the growth effects; and (c) the income losses induced by the additional investment effect. Their magnitude depends on the social preferences. Solutions for alternative social preferences are illustrated by the grey area around the baseline solutions (red curves). The parameters are chosen uniformly within the unhatched area in Fig. 6. The shade of grey indicates the frequency with which the solution occurs. Source data are provided as a Source Data file.
