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Sensitivity Of Mitigation To The Optimal Global Temperature: An Experiment With Dice

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Listed:
  • JONGHYUN YOO

    (Yale School of Forestry & Environmental Studies, 195 Prospect Street, New Haven, CT 06511, USA)

  • ROBERT MENDELSOHN

    (Yale School of Forestry & Environmental Studies, 195 Prospect Street, New Haven, CT 06511, USA)

Abstract

It is commonly assumed that the temperature which optimizes global production and welfare is the global temperature in 1900. There is an empirical evidence, however, that suggests a slightly warmer, wetter, and CO2 enriched planet which is more productive. This paper explores the sensitivity of mitigation and the Social Cost of Carbon (SCC) to different assumptions about the optimal global temperature using DICE 2016R. Each 1∘C increase in optimal global temperature lowers the SCC in 2020 by about half and delays the mitigation path by about a decade, but increases the long run temperature only slightly.

Suggested Citation

  • Jonghyun Yoo & Robert Mendelsohn, 2018. "Sensitivity Of Mitigation To The Optimal Global Temperature: An Experiment With Dice," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 1-8, May.
    • Handle: RePEc:wsi:ccexxx:v:09:y:2018:i:02:n:s2010007818500033
    DOI: 10.1142/S2010007818500033
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    References listed on IDEAS

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