Show simple item record

dc.contributor.authorLi, Xin
Narajabad, Borghan
Temzelides, Ted
dc.date.accessioned 2016-08-19T14:44:11Z
dc.date.available 2016-08-19T14:44:11Z
dc.date.issued 2015
dc.identifier.citation Li, Xin, Narajabad, Borghan and Temzelides, Ted. "Robust Dynamic Energy Use and Climate Change." (2015) http://bakerinstitute.org/research/robust-dynamic-energy-use-and-climate-change/.
dc.identifier.urihttp://hdl.handle.net/1911/91269
dc.description.abstract We study a dynamic stochastic general equilibrium model in which agents are concerned about model uncertainty regarding climate change. An externality from greenhouse gas emissions damages the economyメs capital stock. We assume that the mapping from climate change to damages is subject to uncertainty, as opposed to risk, and we use robust control theory to study efficiency and optimal policy. We obtain a sharp analytical solution for the implied environmental externality and characterize dynamic optimal taxation. The optimal tax that restores the socially optimal allocation is Pigouvian. We study optimal output growth in the presence and in the absence of concerns about model uncertainty and find that these can lead to substantially different conclusions regarding the optimal emissions and the optimal mix of fossil fuel.
dc.language.iso eng
dc.relation.urihttp://bakerinstitute.org/research/robust-dynamic-energy-use-and-climate-change/
dc.title Robust Dynamic Energy Use and Climate Change
dc.type Working paper
dc.subject.keywordrobustness
climate change
model uncertainty
dynamic taxation
dc.contributor.publisher James A. Baker III Institute for Public Policy of Rice University
dc.type.dcmi Text


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record