Nordhaus

A new paper published in Nature Climate Change shows that despite appearances to the contrary, the Nobel Prize-winning DICE ‘climate and economy’ model and the UN’s climate targets are in fact pulling in the same direction. Read more

Dimitri Zenghelis explains why Paul Romer’s theory of endogenous growth can be harnessed to direct and design a net-zero-carbon future while using William Nordhaus’s DICE and RICE models may already have proved truly damaging. Read more

The 2018 Nobel Prize for Economics has focused a spotlight on the ongoing controversy surrounding estimates of the potential impacts... Read more

‘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

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