The 2018 Nobel Prize for Economics has focused a spotlight on the ongoing controversy surrounding estimates of the potential impacts... Read more
DICE models
‘To slow or not to slow’ (Nordhaus, 1991) was the first economic appraisal of greenhouse gas emissions abatement and founded a large literature on a topic of worldwide importance. We offer our assessment of the original article and trace its legacy, in particular Nordhaus's later series of ‘DICE’ models. From this work, many have drawn the conclusion that an efficient global emissions abatement policy comprises modest and modestly increasing controls. We use DICE itself to provide an initial illustration that, if the analysis is extended to take more strongly into account three essential elements of the climate problem – the endogeneity of growth, the convexity of damage and climate risk – optimal policy comprises strong controls. Read more
Lord Stern says current models do not adequately reflect the science and the impact on global economies The Independent Read more
A new version of a standard economic model shows that the risks from unchecked climate change are bigger than previously... Read more
Endogenous growth, convexity of damages and climate risk: how Nordhaus’ framework supports deep cuts in carbon emissions Read more
Environmental and Resource Economics. Economic evaluation of climate policy traditionally treats uncertainty by appealing to expected utility theory. Read more