Optimal carbon abatement in a stochastic equilibrium model with climate change

The Effect of Climate Change on Economic Growth (Dynamic Computable General Equilibrium Model Approach in Iran)

Climate change is one of the most important issues affecting different economic sectors. Although this phenomenon has had a larger effect on the agricultural sector due to the heavy dependence of agriculture on weather conditions as compared to the other economic sectors, other economic sectors such as the industry, mining and service sectors are also influenced by weather changes due to their ...

Optimal Climate Change Policy: R&D Investments and Abatement under Uncertainty

Human induced climate change is a major public policy problem today. One vexing problem faced by policy makers is how to allocate research budgets across a variety of energy technologies, in order to reduce the future costs of controlling climate change. In this paper we apply a multi-model approach, implementing probabilistic data derived from expert elicitations into a stochastic programming ...

A stochastic control model for optimal timing of climate policies

A stochastic control model is proposed as a paradigm for the design of optimal timing of greenhouse gases (GHG) emissions abatement. The resolution of uncertainty concerning climate sensitivity and the technological breakthrough providing access to a carbon-free production economy are modeled as controlled stochastic jump processes. The optimal policy is characterized using the dynamic programm...

The timing of biological carbon sequestration and carbon abatement in the energy sector under optimal strategies against climate risks

This paper addresses the timing of the use of biological carbon sequestration and its capacity to alleviate the carbon constraint on the energy sector. We constructed a stochastic optimal control model balancing the costs of fossil emission abatement, the opportunity costs of lands allocated to afforestation, and the costs of uncertain climate damages. We show that a minor part of the sequestra...

Climate Change Abatement Strategies Which Way is the Wind Blowing?