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Complexity and the Economics of Climate Change : a survey and look forward

Listed author(s):
  • T. BALINT

    (Université Paris I, Panthéon -Sorbonne and CNRS)

  • F. LAMPERTI

    (Université Paris I Panthéon - Sorbonne and CNRS Institute of Economic and LEM, Scuola Superiore Sant'Anna)

  • A. Mandel

    (Université Paris1, Panthéon-Sorbonne and CNRS PSE Paris School of Economics Author-Name : M. Napoletano Author-Workplace-Name : OFCE Sciences PO and SKEMA Business School)

  • A. Roventini Author-Workplace-Name : OFCE-Sciences Pp and SKEMA Businees School
  • A. Sapio Author-Workplace-Name : Parathenope Universtiy of Naples

We provide a survey of the micro and macro economics of climate change from a complexity science perspective and we discuss the challenges ahead for this line of research. We identify four areas of the literature where complex system models have already produced valuable insights: (i) coalition formation and climate negotiations, (ii) macroeconomic impacts of climate-related events, (iii) energy markets and (iv) di usion of climate-friendly technologies. On each of these issues, accounting for heterogeneity, interactions and disequilibrium dynamics provides a complementary and novel perspective to the one of standard equilibrium models. Furthermore, it highlights the potential economic benefits of mitigation and adaptation policies and the risk of under-estimating systemic climate change-related risks.

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Paper provided by Observatoire Francais des Conjonctures Economiques (OFCE) in its series Documents de Travail de l'OFCE with number 2016-23.

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Date of creation: Jul 2016
Handle: RePEc:fce:doctra:1623
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