Climate justice in an Intergenerational Sustainability Framework: A Stochastic OLG Model

Climate justice as a commons is conceived as the intertemporal climate equity and equal- ity exchange amongst generations. Sustainability, intended as the interplay amongst the economy, the society, the environment, and the governance, is essential to forge the climate justice theoretical framework. On this base, the study attempts to model intertemporal choice amongst generations in these four domains, making use of an over- lapping generations (OLG) model. The proxies detected are GDP growth (economy), environmental quality (environment), and labor growth, and environmental investment (society) as assumptions. The governance dimension is captured by the di¤erence in wealth between young and old generations. The work aims at replying to the follow- ing research question: Which are the conditions for sustainable development such that climate justice holds? The intra-intergenerational exchange is de…ned in two periods, while the individual provides their preferred economic and environmental choice mix as consumption-saving. This study shows that sustainable growth is achievable only with increased young e¤ort and less leisure and consumption.