DICE-RD: An Implementation of Rate-Related Damages in the DICE model

Peter Michaelis (peter.michaelis@wiwi.uni-augsburg.de) and Heiko Wirths (heikowirths@yahoo.de)
Additional contact information
Peter Michaelis: University of Augsburg, Department of Economics
Heiko Wirths: Amprion GmbH, Dortmund, Germany

No 337, Discussion Paper Series from Universitaet Augsburg, Institute for Economics

Abstract: A growing body of literature from the natural and the social sciences indicates that the rate of temperature increase is another key driver of total climate damages, next to the absolute increase in temperature compared to the pre-industrial level. Nonetheless, the damage functions employed in integrated assessment models that aim at studying the economics of climate change are usually based on the absolute temperature increase alone. Hence, these models neglect additional damag-es that will occur if the rate of temperature increase exceeds a certain threshold that overstrains the adaptive capacities of ecological and social systems. In the present paper, we implement such rate-related damages in the well-known integrated assessment model DICE-2016R. Using the resulting model variant DICE-RD we show for several different scenarios that an insufficient climate policy that ignores rate-related damages can lead to substantial economic losses.

Keywords: integrated assessment; DICE model; climate policy; rate of temperature increase (search for similar items in EconPapers)
JEL-codes: O44 Q54 Q58 (search for similar items in EconPapers)
Date: 2019-06
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://opus.bibliothek.uni-augsburg.de/opus4/files/71054/337.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:aug:augsbe:0337

Access Statistics for this paper

More papers in Discussion Paper Series from Universitaet Augsburg, Institute for Economics Universitaetsstrasse 16, D-86159 Augsburg, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Simone Raab-Kratzmeier (simone.raab@wiwi.uni-augsburg.de).