- Consulting Editors
- List of Contributors
- The Macroeconomics of Global Warming
- Improving Climate Projections to Better Inform Climate Risk Management
- Energy Balance Climate Models, Damage Reservoirs, and The Time Profile of Climate Change Policy
- Economics of Environmental Regime Shifts
- Policy Scenarios in a Model of Optimal Economic Growth and Climate Change
- Adaptive Model-Predictive Climate Policies in a Multicountry Setting
- Prospects of Tools from Differential Games in the Study of Macroeconomics of Climate Change
- Fairness in Climate Negotiations: A Meta-Game Analysis Based on Community Integrated Assessment
- Climate Change and Second-Best Abatement in a Multiregion World with Endogenous Growth
- Global Warming and R&D-Based Growth in a Trade Model between Environmentally Sensitive and Environmentally Neglectful Countries
- Climate Change and Intergenerational Well-Being
- The Atmosphere as a Global Commons
- The Social Cost of Carbon
- Climate-Friendly Technological Change for Developing Countries
- Renewable Energy: Models, Implications, and Prospects
- Emission Trading Systems and Technological Innovation: A Random Matching Model
- The Reality of Nuclear Power: The Fukushima Experience and Its Impact
- Forecast-Based Pricing of Weather Derivatives
- Employment and Output Effects of Climate Policies
- Macroeconomic Effects of Renewable Energy and Energy Efficiency Policies with a Focus on Germany
- Stabilization of Earth’s Climate in the 21st Century by the Stabilization of Per Capita Consumption
- Does the Kyoto Protocol Intensify Carbon Leakage to China?
- Climate Thresholds, Weather Extremes, and Catastrophic Losses
- Climate Impacts on Agriculture: A Challenge to Complacency?
- The Legal Framework of Global Environment Governance on Climate Change: A Critical Survey
- Environment and Development Challenges: The Imperative of a Carbon Fee and Dividend
- The Need for Sustainable Development and a Carbon Market: Avoiding Extinction
- Name Index
- Subject Index
Abstract and Keywords
This chapter explores optimal mitigation policies through the lens of a latitude-dependent energy balance climate model, featuring an endoge-nously driven polar ice cap. We associate the movement of the polar ice cap with the idea of a damage reservoir being a finite source of climate related damage affecting the economy only to the extent that there still exists some ice left to melt. We capture this idea by coupling the climate model with an economic growth model. When combined with two sources of damages, conventional and reservoir type damages, this generates mul-tiple steady states and Skiba points, which induce U-shaped mitigation policies. This is also shown in a modified version of the well known DICE model by William Nordhaus.
William Brock, Vilas Research Professor, Emeritus, University of Wisconsin and Research Professor, University of Missouri, Columbia.
Gustav Engström, Researcher, The Beijer Institute of Ecological Economics, Stockholm Resilience Centre and the Department of Economics, Stockholm University.
Anastasios Xepapadeas, Professor of Economic Theory and Policy, Department of International and European Economic Studies, Athens University of Economics and Business.
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