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There is great uncertainty about future climate conditions and the appropriate policies for managing interactions between the climate and the economy. We develop a multidimensional computational model to examine how uncertainties and risks…

Economics · Quantitative Finance 2015-04-30 Yongyang Cai , Kenneth L. Judd , Thomas S. Lontzek

Climate physical risks pose an increasing threat to urban infrastructure, necessitating urgent climate adaptation measures to protect lives and assets. Implementing such measures, including the development of resilient infrastructure and…

General Economics · Economics 2025-02-25 Chao Li , Xing Su , Chao Fan , Jun Wang , Xiangyu Wang

Social cost of carbon (SCC) is estimated by integrated assessment models (IAM) and is widely used by government agencies to value climate policy impacts. While there is an ongoing debate about obtained numerical estimates and related…

General Economics · Economics 2021-11-08 Nikolay Khabarov , Alexey Smirnov , Michael Obersteiner

This paper presents a refined country-level integrated assessment model, FUND 3.9n, that extends the regional FUND 3.9 framework by incorporating sector-specific climate impact functions and parametric uncertainty analysis for 198…

General Economics · Economics 2025-09-05 In Chang Hwang , Richard S. J. Tol

To enhance decarbonization efforts in electric power systems, we propose a novel electricity market clearing model that internalizes the allocation of emissions from generations to loads and allows for consideration of consumer-side carbon…

Systems and Control · Electrical Eng. & Systems 2025-01-20 Wenqian Jiang , Line Roald

Carbon emissions significantly contribute to climate change, and carbon credits have emerged as a key tool for mitigating environmental damage and helping organizations manage their carbon footprint. Despite their growing importance across…

Computers and Society · Computer Science 2026-01-21 Qingwen Zeng , Hanlin Xu , Nanjun Xu , Zhenghao Zhao , Joakim Westerholm , Flora Salim , Junbin Gao , Huaming Chen

Carbon credits purchased in the voluntary carbon market allow unavoidable emissions, such as from international flights for essential travel, to be offset by an equivalent climate benefit, such as avoiding emissions from tropical…

Cryptography and Security · Computer Science 2024-04-04 Sadiq Jaffer , Michael Dales , Patrick Ferris , Thomas Swinfield , Derek Sorensen , Robin Message , Srinivasan Keshav , Anil Madhavapeddy

The social cost of carbon (SCC) serves as a concise gauge of climate change's economic impact, often reported at the global and country level. SCC values are disproportionately high for less-developed, populous countries. Assessing the…

General Economics · Economics 2024-01-03 Francisco Estrada , Veronica Lupi , Wouter Botzen , Richard S. J. Tol

Decarbonizing electric grids is a crucial global endeavor in the pursuit of carbon neutrality. Taking carbon emissions from generation into account when pricing electricity usage is an essential way to achieve this goal. However, such…

Optimization and Control · Mathematics 2024-04-19 Yue Chen , Changhong Zhao

An increasing share of consumers care about the carbon footprint of their electricity. This paper analyzes a method to integrate consumer carbon preferences in the electricity market-clearing by introducing consumer-based carbon costs and a…

Systems and Control · Electrical Eng. & Systems 2026-01-27 Wenqian Jiang , Aditya Rangarajan , Line Roald

A large database of published model results is used to estimate the distribution of the social cost of carbon as a function of the underlying assumptions. The literature on the social cost of carbon deviates in its assumptions from the…

Econometrics · Economics 2025-07-03 Richard S. J. Tol

We estimate the national social cost of carbon using a recent meta-analysis of the total impact of climate change and a standard integrated assessment model. The average social cost of carbon closely follows per capita income, the national…

General Economics · Economics 2026-01-21 Matthew K. Agrawala , Richard S. J. Tol

Carbon futures has recently emerged as a novel financial asset in the trading markets such as the European Union and China. Monitoring the trend of the carbon price has become critical for both national policy-making as well as industrial…

Machine Learning · Computer Science 2023-05-08 Tianqi Pang , Kehui Tan , Chenyou Fan

By its nature, the so-called social cost of carbon (SCC(t)) will likely not cover the cost induced by climate change (damage cost and abatement cost) if it is used as a CO$_2$-price. It is a marginal price only. We define an implied…

Mathematical Finance · Quantitative Finance 2024-01-30 Christian P. Fries

There is much disagreement concerning how best to control global carbon emissions. We explore quantitatively how different control schemes affect the collective emission dynamics of a population of emitting entities. We uncover a complex…

Physics and Society · Physics 2011-07-12 Zhenyuan Zhao , Dan Fenn , Pak Ming Hui , Neil F. Johnson

Most risk analysis models systematically underestimate the probability and impact of catastrophic events (e.g., economic crises, natural disasters, and terrorism) by not taking into account interconnectivity and interdependence of risks. To…

Physics and Society · Physics 2017-10-17 Xin Lin , Alaa Moussawi , Gyorgy Korniss , Jonathan Z. Bakdash , Boleslaw K. Szymanski

A meta-analysis of published estimates shows that the social cost of carbon has increased as knowledge about climate change accumulates. Correcting for inflation and emission year and controlling for the discount rate, kernel density…

General Economics · Economics 2022-08-04 Richard S. J. Tol

As our submission for track three of the AI for Global Climate Cooperation (AI4GCC) competition, we propose a negotiation protocol for use in the RICE-N climate-economic simulation. Our proposal seeks to address the challenges of carbon…

Computers and Society · Computer Science 2023-08-07 Phillip Wozny , Bram Renting , Robert Loftin , Claudia Wieners , Erman Acar

In this paper, we compare different mitigation policies when housing investments are irreversible. We use a general equilibrium model with non-homothetic preferences and an elaborate setup of the residential housing and energy production…

General Economics · Economics 2023-10-25 Alkis Blanz , Beatriz Gaitan

An updated and extended meta-analysis confirms that the central estimate of the social cost of carbon is around $200/tC with a large, right-skewed uncertainty and trending up. The pure rate of time preference and the inverse of the…

Econometrics · Economics 2024-09-13 Richard S. J. Tol
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