IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00002451.html
   My bibliography  Save this paper

An abrupt stochastic damage function to analyse climate policy benefits

Author

Listed:
  • Minh Ha-Duong

    () (CIRED - Centre International de Recherche sur l'Environnement et le Développement - ENGREF - Ecole Nationale du Génie Rural, des Eaux et des Forêts - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Patrice Dumas

    () (CIRED - Centre International de Recherche sur l'Environnement et le Développement - ENGREF - Ecole Nationale du Génie Rural, des Eaux et des Forêts - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper studies uncertainty about the non-linearity of climate change impact. The DIAM 2.3 model is used to compute the sensitivity of optimal CO2 emissions paths with respect to damage function parameters. This builds upon results of the EMF-14 uncertainty subgroup study by explicitly allowing for the possibility of threshold effects and hockey stick damage functions. It also extends to the cost-benefits framework previous studies about inertia of energy systems. Results show that the existence of a threshold in the damage function is critical to precautionary action. Optimal path are much less sensitive to uncertainty on the scale of the damages than on the threshold values.

Suggested Citation

  • Minh Ha-Duong & Patrice Dumas, 2004. "An abrupt stochastic damage function to analyse climate policy benefits," Post-Print halshs-00002451, HAL.
  • Handle: RePEc:hal:journl:halshs-00002451
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00002451
    as

    Download full text from publisher

    File URL: https://halshs.archives-ouvertes.fr/halshs-00002451/document
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brian C. O'Neill & Paul Crutzen & Arnulf Grübler & Minh Ha Duong & Klaus Keller & Charles Kolstad & Jonathan Koomey & Andreas Lange & Michael Obersteiner & Michael Oppenheimer & William Pepper & Warre, 2006. "Learning and climate change," Climate Policy, Taylor & Francis Journals, vol. 6(5), pages 585-589, September.
      • Brian C. O'Neill & Paul Crutzen & Arnulf Grübler & Minh Ha-Duong & Klaus Keller & Charles Kolstad & Jonathan Koomey & Andreas Lange & Michael Obersteiner & Michael Oppenheimer & William Pepper & Warre, 2006. "Learning and climate change," Post-Print halshs-00134718, HAL.
    2. Valentina Bosetti & Laurent Gilotte, 2005. "Carbon Capture and Sequestration: How Much Does this Uncertain Option Affect Near-Term Policy Choices?," Working Papers 2005.86, Fondazione Eni Enrico Mattei.
    3. Agustin Molina Morales & Miguel Guerrero, 2006. "The European union as first mover in the market for greenhouse gas emissions permits," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 49(4), pages 533-553.
    4. Muller-Furstenberger, Georg & Wagner, Martin, 2007. "Exploring the environmental Kuznets hypothesis: Theoretical and econometric problems," Ecological Economics, Elsevier, vol. 62(3-4), pages 648-660, May.
    5. Andrei Bazhanov, 2012. "A Closed-Form Solution to Stollery’s Problem with Damage in Utility," Computational Economics, Springer;Society for Computational Economics, vol. 39(4), pages 365-386, April.

    More about this item

    Keywords

    Changement climatique; modélisation intégrée;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00002451. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.