Title

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

Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

10-2017

Journal or Book Title

Annual Review of Resource Economics

Volume

9

First Page or Article ID Number

117

Last Page

142

DOI

10.1146/annurev-resource-100516-053516

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.

JEL Classification

C61, D91, H23, Q54, Q58

Comments

This is a working paper of an article published as Lemoine, Derek, and Ivan Rudik. "Managing Climate Change Under Uncertainty: Recursive Integrated Assessment at an Inflection Point." Annual Review of Resource Economics 9 (2017): 117-142. doi:10.1146/annurev-resource-100516-053516. Posted with permission.

Copyright Owner

Annual Reviews

Published Version

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