EconPapers    
Economics at your fingertips  
 

And then he wasn't a she: Climate change and green transitions in an agent-based integrated assessment model

Francesco Lamperti, Giovanni Dosi, Mauro Napoletano, Andrea Roventini and Alessandro Sapio
Additional contact information
Francesco Lamperti: UP1 - Université Paris 1 Panthéon-Sorbonne
Alessandro Sapio: PARTHENOPE - Università degli Studi di Napoli “Parthenope” = University of Naples

SciencePo Working papers Main from HAL

Abstract: In this work, we employ an agent-based integrated assessment model to study the likelihood of transition to green, sustainable growth in presence of climate damages. The model comprises heterogeneous fossil-fuel and renewable plants, capital- and consumption-good firms and a climate box linking greenhouse gasses emission to temperature dynamics and microeconomic climate shocks affecting labour productivity and energy demand of firms. Simulation results show that the economy possesses two statistical equilibria: a carbon-intensive lock-in and a sustainable growth path characterized by better macroeconomic performances. Once climate damages are accounted for, the likelihood of a green transition depends on the damage function employed. In particular, aggregate and quadratic damage functions overlook the impact of climate change on the transition to sustainability; to the contrary, more realistic micro-level damages are found to deeply influence the chances of a transition. Finally, we run a series of policy experiments on carbon (fossil fuel) taxes and green subsidies. We find that the effectiveness of such marketbased instruments depends on the different channels climate change affects the economy through, and complementary policies might be required to avoid carbon-intensive lock-ins.

Keywords: Climate change; Agent based models; Transition; Energy policy; Growth (search for similar items in EconPapers)
Date: 2018-09-01
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03443464
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://sciencespo.hal.science/hal-03443464/document (application/pdf)

Related works:
Working Paper: And then he wasn't a she: Climate change and green transitions in an agent-based integrated assessment model (2018) Downloads
Working Paper: And then he wasn't a she: Climate change and green transitions in an agent-based integrated assessment model (2018) Downloads
Working Paper: And Then He Wasn't a She: Climate Change and Green Transitions in an Agent-Based Integrated Assessment Model (2018) Downloads
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:hal:spmain:hal-03443464

Access Statistics for this paper

More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().

 
Page updated 2024-07-15
Handle: RePEc:hal:spmain:hal-03443464