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The permafrost carbon feedback in DICE-2013R modeling and empirical results

Author

Listed:
  • Heiko Wirths

    (University of Augsburg)

  • Joachim Rathmann

    (Institute of GeographyUniversity of Augsburg)

  • Peter Michaelis

    (University of Augsburg)

Abstract

Climate feedback mechanisms that have the potential to intensify global warming have been omitted almost completely in the integrated assessment of climate change and the economy so far. In the present paper, we incorporate the permafrost carbon feedback (PCF) into the well-known integrated assessment model DICE-2013R. We calibrate the parameters for our extended version of DICE-2013R and compute the optimal emission mitigation rates that maximize welfare. Our results indicate that accounting for the PCF leads to an increase in mitigation. Finally, we quantify the economic losses resulting from a climate policy which ignores the impacts of the PCF.

Suggested Citation

  • Heiko Wirths & Joachim Rathmann & Peter Michaelis, 2018. "The permafrost carbon feedback in DICE-2013R modeling and empirical results," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(1), pages 109-124, January.
    • Handle: RePEc:spr:envpol:v:20:y:2018:i:1:d:10.1007_s10018-017-0186-5
    DOI: 10.1007/s10018-017-0186-5
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    References listed on IDEAS

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    Cited by:

    1. Richard S.J. Tol, 2020. "The Economic Impact of Weather and Climate," Video Library 2094, Department of Economics, University of Sussex Business School.
    2. Christian Fries & Lennart Quante, 2023. "Intergenerational Equity in Models of Climate Change Mitigation: Stochastic Interest Rates introduce Adverse Effects, but (Non-linear) Funding Costs can Improve Intergenerational Equity," Papers 2309.16186, arXiv.org, revised Sep 2023.
    3. Christian P. Fries & Lennart Quante, 2023. "Accounting for Financing Risks improves Intergenerational Equity of Climate Change Mitigation," Papers 2312.07614, arXiv.org.
    4. Peter Michaelis & Heiko Wirths, 2020. "DICE-RD: an implementation of rate-related damages in the DICE model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(4), pages 555-584, October.

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    More about this item

    Keywords

    Integrated assessment; DICE model; Climate feedbacks; Permafrost;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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