Managing Climate Change under Uncertainty: Recursive Integrated Assessment at an Inflection Point

Derek M Lemoine, Ivan Rudik

Research output: Contribution to journalReview article

10 Citations (Scopus)

Abstract

Uncertainty is critical to questions about climate change policy. Recently developed recursive integrated assessment models have become the primary tools for studying and quantifying the policy implications of uncertainty. We decompose the channels through which uncertainty affects policy and quantify them in a recursive extension of a benchmark integrated assessment model. The first wave of recursive models has made valuable, pioneering efforts at analyzing disparate sources of uncertainty. We argue that frontier numerical methods will enable the next generation of recursive models to better capture the information structure of climate change and to thereby ask new types of questions about climate change policy.

Original languageEnglish (US)
Pages (from-to)117-142
Number of pages26
JournalAnnual Review of Resource Economics
Volume9
DOIs
StatePublished - Oct 5 2017

Fingerprint

Integrated assessment
Climate change
Uncertainty
Climate change policy
Integrated assessment model
Information structure
Pioneering
Policy implications
Benchmark
Numerical methods

Keywords

  • Carbon
  • Climate
  • Dynamic programming
  • Greenhouse gas
  • Insurance
  • Learning
  • Precaution
  • Prudence
  • Uncertainty

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Managing Climate Change under Uncertainty : Recursive Integrated Assessment at an Inflection Point. / Lemoine, Derek M; Rudik, Ivan.

In: Annual Review of Resource Economics, Vol. 9, 05.10.2017, p. 117-142.

Research output: Contribution to journalReview article

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