Climate Change through the Lens of Macroeconomic Modeling

Jésus Fernández-Villaverde, Kenneth T. Gillingham, Simon Scheidegger, Jesús Fernández-Villaverde and Kenneth Gillingham
Authors registered in the RePEc Author Service: Jesus Fernandez-Villaverde and Kenneth Thomas Gillingham

No 11346, CESifo Working Paper Series from CESifo

Abstract: There is a rapidly advancing literature on the macroeconomics of climate change. This review focuses on developments in the construction and solution of structural integrated assessment models (IAMs), highlighting the marriage of state-of-the-art natural science with general equilibrium theory. We discuss challenges in solving dynamic stochastic IAMs with sharp nonlinearities, multiple regions, and multiple sources of risk. Key innovations in deep learning and other machine learning approaches overcome many computational challenges and enhance the accuracy and relevance of policy findings. We conclude with an overview of recent applications of IAMs and key policy insights.

Keywords: climate change; integrated assessment model; dynamic stochastic general equilibrium (search for similar items in EconPapers)
JEL-codes: C61 E27 Q50 Q51 Q54 Q58 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-dge, nep-ene and nep-env
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Related works:
Working Paper: Climate Change through the Lens of Macroeconomic Modeling (2024)
Working Paper: Climate Change through the Lens of Macroeconomic Modeling (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_11346

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