Related papers: Sensitivity analysis of an integrated climate-econ…
We assess empirical models in climate econometrics using modern statistical learning techniques. Existing approaches are prone to outliers, ignore sample dependencies, and lack principled model selection. To address these issues, we…
Nonlinear regression is a useful statistical tool, relating observed data and a nonlinear function of unknown parameters. When the parameter-dependent nonlinear function is computationally intensive, a straightforward regression analysis by…
Understanding the dynamics and evolution of climate change and associated uncertainties is key for designing robust policy actions. Computer models are key tools in this scientific effort, which have now reached a high level of…
This article proposes a fundamental methodological shift in the modelling of policy interventions for sustainability transitions in order to account for complexity (e.g. self-reinforcing mechanism arising from multi-agent interactions) and…
Climate change is a major global challenge today. To assess how policies may lead to mitigation, economists have developed Integrated Assessment Models, however, most of the equilibrium based models have faced heavy critiques. Agent-based…
We study the robustness of system estimation to parametric perturbations in system dynamics and initial conditions. We define the problem of sensitivity-based parametric uncertainty quantification in dynamical system estimation. The main…
Economic model predictive control and tracking model predictive control are two popular advanced process control strategies used in various of fields. Nevertheless, which one should be chosen to achieve better performance in the presence of…
The cost of the impacts of climate change have already proven to be larger than previously believed. Understanding the costs and benefits of adapting to the changing climate is necessary to make targeted and appropriate investment…
One of the most used metrics to gauge the effects of climate change is the equilibrium climate sensitivity, defined as the long-term (equilibrium) temperature increase resulting from instantaneous doubling of atmospheric CO$_2$. Since…
A review of economic approaches showed the lack of a universal method for assessing management decisions in the face of an increasing volume of analyzed data and changing parameters of the external environment. The method of integral…
We revisit a recent claim that the Earth's climate system is characterized by sensitive dependence to parameters; in particular, that the system exhibits an asymmetric, large-amplitude response to normally distributed feedback forcing. Such…
The evaluation of climate models is a crucial step in climate studies. It consists of quantifying the resemblance of model outputs to reference data to identify models with superior capacity to replicate specific climate variables. Clearly,…
We study the implications of model uncertainty in a climate-economics framework with three types of capital: "dirty" capital that produces carbon emissions when used for production, "clean" capital that generates no emissions but is…
We develop an analytical framework to assess the adaptations in a coupled ecological-economic system and apply it to a bio-economic model. Our framework allows us to quantify the impact of multiple drivers on a coupled ecological-economic…
Traditional economic growth theories, grounded in deterministic and often linear frameworks, fail to adequately capture the inherent uncertainty, non-commutativity, and complex interdependencies of modern economies. This paper proposes a…
Integrated Assessment Models (IAMs) of the climate and economy aim to analyze the impact and efficacy of policies that aim to control climate change, such as carbon taxes and subsidies. A major characteristic of IAMs is that their…
Power system expansion models are a widely used tool for planning powersystems, especially considering the integration of large shares of renewableresources. The backbone of these models is an optimization problem, whichdepends on a number…
This paper outlines a critical gap in the assessment methodology used to estimate the macroeconomic costs and benefits of climate policy. It shows that the vast majority of models used for assessing climate policy use assumptions about the…
To analyze climate change mitigation strategies, economists rely on simplified climate models - climate emulators. We propose a generic and transparent calibration and evaluation strategy for these climate emulators that is based on Coupled…
Driven by the increasing frequency and intensity of natural disasters and chronic climate threats, we investigate the impact of physical climate risk on global equity portfolios. By employing a panel regression analysis on sectoral returns,…