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• W2116228500 abstract "In integrated assessment models (IAMs) economic activity leads to global warming, which causes future economic costs. However, typical IAMs do not explicitly represent the role of natural capital. In this paper, the DICE model by Nordhaus (2008) is expanded with a natural capital variable that is affected both by climate change and by depletive effects of economic activity. Due to a synergy between the two effects, the optimal policy of the expanded model features more and earlier abatement of CO2 emissions than DICE. Interestingly, the policy implications are different from what follows if one tries to capture the depletive effects on natural capital by simply reducing factor productivity growth in DICE. Acknowledging considerable uncertainty, simulations show that climate- and savings rate policies from the expanded model are more robust in the long term than policies that do not consider non-climatic depletion effects on natural capital." @default.
• W2116228500 created "2016-06-24" @default.
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• W2116228500 date "2015-08-01" @default.
• W2116228500 modified "2023-09-27" @default.
• W2116228500 title "Natural capital in integrated assessment models of climate change" @default.
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• W2116228500 doi "https://doi.org/10.1016/j.ecolecon.2015.05.009" @default.
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