DICE Simplified

Masako Ikefuji; Roger J.A. Laeven; Jan R. Magnus; Chris Muris

doi:10.1007/s10666-020-09738-2

DICE Simplified

Masako Ikefuji^*, Roger J.A. Laeven, Jan R. Magnus, Chris Muris

^*Corresponding author for this work

Econometrics and Data Science

Research output: Contribution to Journal › Article › Academic › peer-review

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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
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	https://doi.org/10.1007/s10666-020-09738-2
Publication status	Published - Feb 2021

Funding

This research was funded in part by the Japan Society for the Promotion of Science (JSPS), KAKENHI Grant JP19K01669 (Ikefuji), and the Netherlands Organization for Scientific Research (NWO) under grant Vidi-2009 (Laeven). Acknowledgments

Funders	Funder number
Nederlandse Organisatie voor Wetenschappelijk Onderzoek
Japan Society for the Promotion of Science	19K01669

Keywords

Climate change
Damage function
DICE model
Integrated assessment model
Optimal policy

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/s10666-020-09738-2

DICE SimplifiedFinal published version, 1.02 MBLicence: Article 25fa Dutch Copyright Act

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KW - Integrated assessment model

KW - Optimal policy

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DICE Simplified

Abstract

Funding

Keywords

UN SDGs

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