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Uncertainty and economic analysis of climate change: a survey of approaches and findings

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  • Peterson, Sonja

Abstract

The analysis of climate change is confronted with large uncertainties that need to be taken into account to arrive at meaningful policy recommendations. The main contribution of economics to this interdisciplinary task is to provide formal frameworks and techniques for analyzing climate policy in the context of uncertainty. This paper will give an overview of existing approaches and findings to provide a broad picture of what economics can contribute to the debate.

Suggested Citation

  • Peterson, Sonja, 2006. "Uncertainty and economic analysis of climate change: a survey of approaches and findings," Open Access Publications from Kiel Institute for the World Economy 3778, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwkie:3778
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    File URL: https://www.econstor.eu/bitstream/10419/3778/1/Pe_Climate_Change.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Eory, Vera & Topp, Cairistiona F. E. & Moran, Dominic & Butler, Adam, 2014. "Assessing uncertainty in the cost-effectiveness of agricultural greenhouse gas mitigation," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170784, Agricultural Economics Society.
    2. Zachlod-Jelec, Magdalena & Boratynski, Jakub, 2016. "How large and uncertain are costs of 2030 GHG emissions reduction target for the European countries? Sensitivity analysis in a global CGE model," MF Working Papers 26, Ministry of Finance in Poland.
    3. Held, Hermann & Kriegler, Elmar & Lessmann, Kai & Edenhofer, Ottmar, 2009. "Efficient climate policies under technology and climate uncertainty," Energy Economics, Elsevier, vol. 31(Supplemen), pages 50-61.
    4. Scott, Michael J. & Daly, Don S. & Hathaway, John E. & Lansing, Carina S. & Liu, Ying & McJeon, Haewon C. & Moss, Richard H. & Patel, Pralit L. & Peterson, Marty J. & Rice, Jennie S. & Zhou, Yuyu, 2015. "Calculating impacts of energy standards on energy demand in U.S. buildings with uncertainty in an integrated assessment model," Energy, Elsevier, vol. 90(P2), pages 1682-1694.
    5. Martina Linnenluecke & Andrew Griffiths & Peter Mumby, 2015. "Executives’ engagement with climate science and perceived need for business adaptation to climate change," Climatic Change, Springer, vol. 131(2), pages 321-333, July.
    6. Gren, Ing-Marie & Carlsson, Mattias & Elofsson, Katarina & Munnich, Miriam, 2012. "Stochastic carbon sinks for combating carbon dioxide emissions in the EU," Energy Economics, Elsevier, vol. 34(5), pages 1523-1531.
    7. Medel, Carlos A., 2011. "The Effects of Global Warming on Fisheries," MPRA Paper 28373, University Library of Munich, Germany.
    8. repec:eee:appene:v:195:y:2017:i:c:p:356-369 is not listed on IDEAS
    9. Alberth, Stephan & Hope, Chris, 2007. "Climate modelling with endogenous technical change: Stochastic learning and optimal greenhouse gas abatement in the PAGE2002 model," Energy Policy, Elsevier, vol. 35(3), pages 1795-1807, March.
    10. Lontzek, Thomas S. & Narita, Daiju, 2009. "The effect of uncertainty on decision making about climate change mitigation: a numerical approach of stochastic control," Kiel Working Papers 1539, Kiel Institute for the World Economy (IfW).
    11. Michela Catenacci & Carlo Giupponi, 2010. "Potentials and Limits of Bayesian Networks to Deal with Uncertainty in the Assessment of Climate Change Adaptation Policies," Working Papers 2010.7, Fondazione Eni Enrico Mattei.
    12. DeCarolis, Joseph F., 2011. "Using modeling to generate alternatives (MGA) to expand our thinking on energy futures," Energy Economics, Elsevier, vol. 33(2), pages 145-152, March.
    13. Eory, Vera, 2015. "Evaluating the use of marginal abatement cost curves applied to greenhouse gas abatement in agriculture," Working Papers 199777, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    14. Eory, Vera, 2015. "Evaluating the use of marginal abatement cost curves applied to greenhouse gas abatement in agriculture," Working Papers 199777, Scottish Agricultural College, Land Economy Research Group.

    More about this item

    Keywords

    Climate change; uncertainty; survey; modeling;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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