{"id":56164,"date":"2021-09-01T15:32:00","date_gmt":"2021-09-01T14:32:00","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&#038;p=56164"},"modified":"2024-09-18T17:04:06","modified_gmt":"2024-09-18T16:04:06","slug":"are-economists-getting-climate-dynamics-right-and-does-it-matter","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/are-economists-getting-climate-dynamics-right-and-does-it-matter\/","title":{"rendered":"Are economists getting climate dynamics right and does it matter?"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>We show that economic models of climate change produce climate dynamics inconsistent with current climate science models: (i) the delay between CO<sub>2<\/sub>&nbsp;emissions and warming is much too long and (ii) positive carbon cycle feedbacks are mostly absent. These inconsistencies lead to biased economic policy advice. Controlling for how the economy is represented, different climate models result in significantly different optimal CO<sub>2<\/sub>&nbsp;emissions. A long delay between emissions and warming leads to optimal carbon prices that are too low and attaches too much importance to the discount rate. Similarly we find that omitting positive carbon cycle feedbacks leads to optimal carbon prices that are too low. We conclude that it is important for policy purposes to bring economic models in line with the state of the art in climate science, and we make practical suggestions for how to do so.<\/p>\n\n\n\n<p>Dietz S., Rezai A., van der Ploeg F., Venmans F. (2021)&nbsp;Are economists getting climate dynamics right and does it matter?&nbsp;<em>Journal of the Association of Environmental and Resource Economists<\/em>, 8 (5), 895-921.<\/p>\n\n","protected":false},"excerpt":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>This paper shows that economic models of climate change produce climate dynamics inconsistent with current climate science models.<\/p>\n\n","protected":false},"author":12,"featured_media":0,"template":"","tags":[89,857,203,1161],"publication-type":[436],"topic_area":[4690,4694],"class_list":["post-56164","publication","type-publication","status-publish","hentry","tag-carbon-prices","tag-carbon-pricing","tag-climate-model","tag-economic-models","publication-type-research-articles","topic_area-climate-science-and-impacts","topic_area-policy-evaluation"],"acf":{"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"0","type":false,"post_type":""},"downloads":{"ref_value":"field_52f16cc1a80f2","value":false,"type":"repeater","post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["simon-dietz","frank-venmans"],"type":"relationship","post_type":"profile"},"article_link":{"ref_value":"field_52eee3c7f0586","value":"https:\/\/www.journals.uchicago.edu\/doi\/10.1086\/713977","type":false,"post_type":""},"article_link_title":{"ref_value":"field_5322399d89d42","value":"External link to paper","type":false,"post_type":""},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""},"show_translations_widget":{"ref_value":"field_6203d588c41e8","value":"0","type":false,"post_type":""}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Are economists getting climate dynamics right and does it matter? 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