Decomposing Integrated Assessment Climate Change

Arbeitspapier

We present a decomposition approach for integrated assessment modeling of climate policy based on a linear approximation of the climate system. Our objective is to demonstrate the usefulness of decomposition for integrated assessment models posed in a complementarity format. First, the complementarity formulation cum decomposition permits a precise representation of post-terminal damages thereby substantially reducing the model horizon required to produce an accurate approximation of the infinite-horizon equilibrium. Second, and central to the economic assessment of climate policies, the complementarity approach provides a means of incorporating second-best effects that are not easily represented in an optimization model.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 05-07

Classification and Topics

• Classification: Wirtschaft ; Allocative Efficiency; Cost-Benefit Analysis ; Computable and Other Applied General Equilibrium Models ; Computational Techniques; Simulation Modeling ; Optimization Techniques; Programming Models; Dynamic Analysis
• Subject: integrated assessment ; decomposition ; terminal constraints ; optimal taxation ; Klimaschutz ; Optimale Besteuerung ; Wirtschaftspolitische Wirkungsanalyse ; Wohlfahrtseffekt ; Dekompositionsverfahren ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Böhringer, Christoph ; Löschel, Andreas ; Rutherford, Thomas F.
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/24153
• Last update: 10.03.2025, 11:42 AM CET