SELFISH BUREAUCRATS AND POLICY HETEROGENEITY IN NORDHAUS’ DICE

Richard Tol

Chapter 6 in Climate Change Economics:Commemoration of Nobel Prize for William Nordhaus, 2021, pp 77-92 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Nordhaus’ seminal DICE model assesses first-best climate policy, a useful but unrealistic yardstick. I propose a measure of policy inefficacy if carbon prices are heterogeneous and use observed prices to recalibrate the DICE model. I introduce a Niskanen-inspired model of climate policy with selfish bureaucrats, and calibrate it to carbon dioxide emissions in the European Union and the policy models used by the IPCC. This model also implies a measure of policy inefficacy that I use to recalibrate DICE. The optimal global mean temperature is 1°C perhaps 2°C higher in the recalibrated than in the original DICE model.

Keywords: William Nordhaus; Climate Change; Integrated Assessment; Climate Change Adaptation; Climate Change Policy; Climate Clubs (search for similar items in EconPapers)
JEL-codes: P48 Q5 Q54 R11 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789811247699_006 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789811247699_006 (text/html)
Ebook Access is available upon purchase.

Related works:
Journal Article: SELFISH BUREAUCRATS AND POLICY HETEROGENEITY IN NORDHAUS’ DICE (2020)
Working Paper: Selfish Bureaucrats and Policy Heterogeneity in Nordhaus’ DICE (2020)
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: https://EconPapers.repec.org/RePEc:wsi:wschap:9789811247699_006

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().