Adaptive Model-Predictive Climate Policies in a Multi-Country Setting
The purpose of this paper is to extend the use of integrated assessment models by defining rational policies based on predictive control and adaptive behavior. The paper begins with an review of the main IAMs and their use. Then the concept of Model Predictive Nash Equilibrium (MPNE) is introduced within a general model involving heterogeneous economic agents operating in (and interfering with) a common environment. This concept captures the fact that agents do not have a perfect foresight for several ingredients of the model, including that of the environment. A version of the canonical IAM (DICE) is developed as a benchmark case. The concept of MPNE is then enhanced with adaptive learning about the environmental dynamics and the damages caused by global warming. The approach is illustrated by some numerical experiments in a two-region setting for several scenarios.
|Date of creation:||Apr 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: + 33 44 07 81 00
Fax: + 33 1 44 07 83 01
Web page: http://centredeconomiesorbonne.univ-paris1.fr/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- BRECHET, Thierry & GERARD, FranÃ§ois & TULKENS, Henry, 2007.
"Climate coalitions: a theoretical and computational appraisal,"
CORE Discussion Papers
2007003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Thierry, BRECHET & FranÃ§ois, GERARD & Henry, TULKENS, 2007. "Climate coalitions : a theoretical and computational appraisal," Discussion Papers (ECON - Département des Sciences Economiques) 2007006, Université catholique de Louvain, Département des Sciences Economiques.
- Thierry Bréchet & François Gerard, 2007. "Climate Coalitions: A Theoretical and Computational Appraisal," Working Papers 2007.21, Fondazione Eni Enrico Mattei.
- BRECHET, Thierry & meniere, Yann & PICARD, Pierre M., 2012.
"The clean development mechanism in a global carbon market,"
CORE Discussion Papers
2012040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Thierry Brechet & Yann Meniere & Pierre M. Picard, 2012. "The Clean Development Mechanism in a Global Carbon Market," CEEES Paper Series CE3S-06/12, European University at St. Petersburg, Department of Economics.
- Zili Yang, 2008. "Strategic Bargaining and Cooperation in Greenhouse Gas Mitigations: An Integrated Assessment Modeling Approach," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262240548, June.
- Valentina Bosetti, Carlo Carraro, Marzio Galeotti, Emanuele Massetti, Massimo Tavoni, 2006. "A World induced Technical Change Hybrid Model," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 13-38.
- BRECHET, Thierry & CAMACHO, Carmen & VELIOV, Vladimir, 2010. "Model predictive control, the economy, and the issue of global warming," CORE Discussion Papers 2010016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Eyckmans, Johan & Tulkens, Henry, 2003.
"Simulating coalitionally stable burden sharing agreements for the climate change problem,"
Resource and Energy Economics,
Elsevier, vol. 25(4), pages 299-327, October.
- EYCKMANS, Johan & TULKENS, Henry, 1999. "Simulating coalitionally stable burden sharing agreements for the climate change problem," CORE Discussion Papers 1999026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- repec:cup:cbooks:9780521715348 is not listed on IDEAS
- Andrew A. Samwick, 1997.
"Discount Rate Heterogeneity and Social Security Reform,"
NBER Working Papers
6219, National Bureau of Economic Research, Inc.
- Samwick, Andrew A., 1998. "Discount rate heterogeneity and social security reform," Journal of Development Economics, Elsevier, vol. 57(1), pages 117-146, October.
- Lawrance, Emily C, 1991. "Poverty and the Rate of Time Preference: Evidence from Panel Data," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 54-77, February.
- William D. Nordhaus, 1992.
"Rolling the 'Dice': An Optimal Transition Path for Controlling Greenhouse Gases,"
Cowles Foundation Discussion Papers
1019, Cowles Foundation for Research in Economics, Yale University.
- Nordhaus, William D., 1993. "Rolling the 'DICE': an optimal transition path for controlling greenhouse gases," Resource and Energy Economics, Elsevier, vol. 15(1), pages 27-50, March.
- Edenhofer, Ottmar & Bauer, Nico & Kriegler, Elmar, 2005. "The impact of technological change on climate protection and welfare: Insights from the model MIND," Ecological Economics, Elsevier, vol. 54(2-3), pages 277-292, August.
- William D. Nordhaus, 2007. "A Review of the Stern Review on the Economics of Climate Change," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 686-702, September.
- Brechet Thierry & Carmen Camacho & Veliov Vladimir, 2011. "Model predictive control, the economy, and the issue of global warming," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00683813, HAL.
- repec:cup:cbooks:9780521887427 is not listed on IDEAS
- WAN, Shui-Ki & WANG, Shin-Huei & WOO, Chi-Keung, 2012. "Total tourist arrival forecast: aggregation vs. disaggregation," CORE Discussion Papers 2012039, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Duranton, Gilles & Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2010. "The Economics of Clusters: Lessons from the French Experience," OUP Catalogue, Oxford University Press, number 9780199592203, March.
When requesting a correction, please mention this item's handle: RePEc:mse:cesdoc:12029. 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: (Lucie Label)
If references are entirely missing, you can add them using this form.