Climate policies under climate model uncertainty: max-min and min-max regret

Working paper

Temperature responses and optimal climate policies depend crucially on the choice of a particular climate model. To illustrate, the temperature responses to given emission reduction paths implied by the climate modules of the well-known integrated assessments models DICE, FUND and PAGE are described and compared. A dummy temperature module based on President Trump's climate sceptic view is added. Using a simple growth model of the global economy, the sensitivity of the optimal carbon price, r...

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Authors: Van der Ploeg, R; Rezai, A

• Publication status: Published
• Publisher: University of Oxford Publisher's website
• Series: OxCarre Papers
• Publication date: 2017-01-31
• Paper number: 187
• Keywords: min-max regret; climate sceptics; max-min; renewable energy subsidy; temperature models; climate model uncertainty; carbon price; max-max