Economics at your fingertips  

Climate engineering under deep uncertainty

Vassiliki Manoussi, Anastasios Xepapadeas () and Johannes Emmerling

Journal of Economic Dynamics and Control, 2018, vol. 94, issue C, 207-224

Abstract: Climate engineering, and in particular solar radiation management (SRM), is attracting increasing attention as a climate policy option. However, its potentially strategic nature and unforeseen side effects provide major policy and scientific challenges. We study the role of SRM in a two-country model with the notable feature of deep uncertainty modeled as model misspecification of SRM side effects. We find that deep uncertainty leads to a reduction in SRM deployment under both global cooperation and strategic Nash behavior, and that the effect is larger if countries act strategically. Furthermore, we demonstrate that if countries have different model confidence about SRM impacts, then the more confident country will engage more strongly in using SRM, leading this country to “free drive”.

Keywords: Climate change; Solar radiation management; Uncertainty; Robust control; Differential game (search for similar items in EconPapers)
JEL-codes: Q53 Q54 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

More articles in Journal of Economic Dynamics and Control from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-04-06
Handle: RePEc:eee:dyncon:v:94:y:2018:i:c:p:207-224