Climate change economics

Osti, Davide (2025): Climate change economics.

Abstract

I briefy review and comment on some papers about climate change economics through time and space along the following exposition, especially centering on the work of William D. Nordhaus' dynamic integrated climate economy model (DICE) and other integrated assessment models to study the effects of climate change on temperatures, amenities, and the economy more broadly.

• Item Type: MPRA Paper
• Language: English
• Keywords: climate change, DICE model, IAMs models, parameter uncertainty
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C15 - Statistical Simulation Methods: General; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D58 - Computable and Other Applied General Equilibrium Models; D - Microeconomics > D6 - Welfare Economics > D62 - Externalities; D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D71 - Social Choice ; Clubs ; Committees ; Associations; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies; F - International Economics > F5 - International Relations, National Security, and International Political Economy > F53 - International Agreements and Observance ; International Organizations; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q32 - Exhaustible Resources and Economic Development; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q34 - Natural Resources and Domestic and International Conflicts; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q52 - Pollution Control Adoption and Costs ; Distributional Effects ; Employment Effects; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate ; Natural Disasters and Their Management ; Global Warming; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q55 - Technological Innovation; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth

References

1. William D. Nordhaus 2021, Dynamic climate clubs: On the effectiveness of incentives in global climate agreements, Proceeding of the National Academy of Sciences (PNAS);

2. William D. Nordhaus 2019, Economics of the disintegration of the Greenland ice sheet, Proceeding of the National Academy of Sciences (PNAS);

3. William D. Nordhaus, 2019, Can We Control Carbon Dioxide? (from 1975), American Economic Review;

4. William D. Nordhaus 2018, Projections and Uncertainties about Climate Change in an Era of Minimal Climate Policies, American Economic Journal: Economic Policy;

5. William D. Nordhaus and Andrew Moffat 2017, A survey of global impacts of climate change: replication, survey methods, and a statistical analysis, NBER working paper series no. 23646;

5. Kenneth Gillingham, William D. Nordhaus, David Anthoff, Geoffrey Blandford, Valentina Bosetti, Peter Christiansen, Haewon McJeon, John Reilly, Paul Sztorc, Modeling Uncertainty in Climate Change: A Multi-Model Comparison, NBER working paper series no. 21637;

6. Detlef P. van Vuuren, Caroline Zimm, Sebastian Busch, Elmar Kriegler, Julia Leininger, Dirk Messner, Nebojsa Nakicenovic, Johan Rockstrom, Keywan Riahi, Frank Sperling, Valentina Bosetti, Sarah Cornell, Owen Ga ney, Paul L. Lucas, Alexander Popp, Constantin Ruhe, Armin von Schiller, Jorn O. Schmidt, and Bjoern Soergel 2022, Defining a sustainable development target space for 2030 and 2050, One Earth;

7. William D. Nordhaus 2017, Integrated Assessment Models of Climate Change, Reporter;

8. Keywan Riahi, Christoph Bertram, Daniel Huppmann, Joeri Reogelj, Valentina Bosetti, Anique-Marie Cabardos, Andre Deppermann, Laurent Drouet, Stefan Frank, Olivier Fricko, Shinichiro Fujimori, Mathias Harmsen, Tomoko Hasegawa, Volker Krey, Gunnar Luderer, Leonidas Paroussus, Roberto Schaefer, Matthias Weitzel, Bob van der Zwaan, Zoi Vrontisi, Francesco della Longa, Jacques Despres, Florian Fosse, Kostas Fragkiadakis, Mykola Gusti, Florian Humpernoder, Kimon Keramidas, Paul Kishimoto, Elmar Kriegler, Malte Meinhausen, Larissa P. Nogueira, Ken Oshiro, Alexander Popp, Pedro R. R. Rochedo, Gamze Unlu, Bas van Ruijven, Junka Takakura, Massimo Tavoni, Detlef van Vuuren, and Behnam Zakeri 2021, Cost and attainability of meeting stringent climate targets without overshoot, Nature Climate Change;

9. Alexandre C. Kooberle, Toon Van Dyck, Celine Guivarch, Nick Macaluso, Valentina Bosetti, Ajay Gambhir, Massimo Tavoni, and Joeri Rogelj 2021, The cost of mitigation revisited, nature climate change;

10. Roman Olson, Ryan Sriver, Marlos Goes, Nathan M. Urban, H. Damon Matthews, Murali Haran, and Klaus Keller, 2012, A climate sensitivity estimate using Bayesian fusion of instrumental observations and an Earth System model, Journal of Geophysical Research;

11. Mengye Zhu, Vaibhav Chaturvedi, Leon Clarke, Katrhyn Hochstetler, Nathan Hultman, Adrien Vogt-Schilb, Pu Wang, Bridging the global stocktake gap of climate mitigation: measuring the political economy progress, unpublished manuscript;

12. Derek Lemoine and Ivan Rudik 2017, Managing climate change under uncertainty: recursive integrated assessment at an inflection point, Annual Re views of Resource Economics;