A recursive method for solving a climate-economy model: value function iterations with logarithmic approximations

In Chang Hwang

MPRA Paper from University Library of Munich, Germany

Abstract: A recursive method for solving an integrated assessment model of climate and the economy is developed in this paper. The method approximates value function with a logarithmic basis function and searches for solutions on a set satisfying optimality conditions. These features make the method suitable for a highly nonlinear model with many state variables and various constraints, as usual in a climate-economy model.

Keywords: Dynamic programming; recursive method; value function iteration; integrated assessment (search for similar items in EconPapers)
JEL-codes: C61 C63 Q54 (search for similar items in EconPapers)
Date: 2014-03-25
New Economics Papers: this item is included in nep-cmp, nep-dge, nep-ene and nep-env
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:54782

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