| Authors |
Brock, W., Engstrom, G. and Xepapadeas, A. |
| Title |
Energy Balance Climate Models, Damage Reservoirs and the Time Pro�le of Climate Change Policy |
| Abstract |
A simpli��ed energy balance climate model is considered with the global
mean temperature as the state variable, and an endogenous ice line. The
movements of the ice line towards the Poles are associated with damage
reservoirs where initial damages are high and then eventually vanish as
the ice caps vanish and the damage reservoir is exhausted. We couple this
climate model with a simple economic growth model and we show that
the endogenous ice line induces a nonlinearity. This nonlinearity when
combined with two sources of damages - the conventional damages due
to temperature increase and the reservoir damages - generates multiple
steady states and Skiba points. It is shown that the policy ramp implied
by this model calls for high mitigation now. Simulation results suggest
that the policy ramp could be U-shaped instead of the monotonically
increasing with low starting mitigation gradualist policy ramp. |
| Keywords |
Energy Balance Climate Models, Damage Reservoir, Ice Line, Permafrost, Heat Di¤usion, Policy Ramp, Skiba Points |
| Classification JEL |
Q54, Q58 |
| File |
BEX_FEEM_WP(16Feb2012).pdf (386493 bytes) |
| File-Function |
First version |
|
Copyright © 2009 [D.I.E.S.S. A.U.E.B.]. All rights reserved.
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