Abstract
We analyze Nordhaus’ DICE model and show that the temperature and CO2 equations are needlessly complicated and can be simplified without loss of essence. In addition, we argue that the damage function can be altered in such a way that it lends itself to experiments involving extreme risk. We conclude that, within the philosophy of the DICE model, significant simplifications can be made which make the model more transparent, more robust, and easier to apply.
Original language | English |
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Pages (from-to) | 1-12 |
Number of pages | 12 |
Journal | Environmental Modeling and Assessment |
Volume | 26 |
Issue number | 1 |
Early online date | 9 Nov 2020 |
DOIs | |
Publication status | Published - Feb 2021 |
Keywords
- Climate change
- Damage function
- DICE model
- Integrated assessment model
- Optimal policy