The current generation has to set mitigation policy under uncertainty about the economic consequences of climate change. This uncertainty governs both the level of damages for a given level of warming, and the steepness of the increase in damage per warming degree. Our model of climate and the economy is a stochastic version of a model employed in assessing the US Social Cost of Carbon (DICE). We compute the optimal carbon taxes and CO2 abatement levels that maximize welfare from economic consumption over time under different risk states.
Technology Partners: MimirTech
Links:
[1] http://admin.indiaenvironmentportal.org.in/feature-article/optimal-co2-mitigation-under-damage-risk-valuation
[2] http://admin.indiaenvironmentportal.org.in/category/author/benjamin-crost
[3] http://admin.indiaenvironmentportal.org.in/category/author/christian-p-traeger
[4] http://admin.indiaenvironmentportal.org.in/category/journal/nature-climate-change
[5] http://admin.indiaenvironmentportal.org.in/category/thesaurus/climate-change
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/carbon-dioxide
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/carbon-tax
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/united-states-america-us
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/climate-mitigation
