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A Regional Dynamic General-Equilibrium Model of Alternative Climate-Change Strategies

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  • Nordhaus, William D
  • Yang, Zili

Abstract

Most analyses treat global warning as a single-agent problem. The present study presents the Regional Integrated model of Climate and the Economy (RICE) model. By disaggregating into countries, the model analyzes different national strategies in climate-change policy: pure market solutions, efficient cooperative outcomes, and noncooperative equilibria. This study finds that cooperative policies show much higher levels of emissions reductions than do noncooperative strategies; that there are substantial differences in the levels of controls in both the cooperative and the noncooperative policies among different countries; and that high-income countries may be the major losers from cooperation. Copyright 1996 by American Economic Association.

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 86 (1996)
Issue (Month): 4 (September)
Pages: 741-65

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Handle: RePEc:aea:aecrev:v:86:y:1996:i:4:p:741-65

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  1. > Environmental and Natural Resource Economics > Climate economics
  2. > Environmental and Natural Resource Economics > Climate economics > International agreements
  3. > Environmental and Natural Resource Economics
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