Optimal Control of a Global Model of Climate Change with Adaptation and Mitigation

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Bibliographic Details
Author / Creator:	Atolia, Manoj.
Imprint:	Washington, D.C. : International Monetary Fund, 2018.
Description:	1 online resource (21 pages)
Language:	English
Series:	IMF Working Paper ; ; WP/18/270 IMF working paper ; WP/18/270.
Subject:	Climatic changes -- Economic aspects. Greenhouse gas mitigation. Climatic changes -- Economic aspects. Greenhouse gas mitigation.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/13513040

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Other authors / contributors:	Loungani, Prakash. Maurer, Helmut.
ISBN:	9781484390672 1484390679
Notes:	Figure 5Figure 6 Includes bibliographical references. Print version record.
Summary:	The Integrated Assessment Model (IAM) has extensively treated the adverse effects of climate change and the appropriate mitigation policy. We extend such a model to include optimal policies for mitigation, adaptation and infrastructure investment studying the dynamics of the transition to a low fossil-fuel economy. We focus on the adverse effects of increase in atmospheric CO2 concentration on households. Formally, the model gives rise to an optimal control problem of finite horizon consisting of a dynamic system with five-dimensional state vector consisting of stocks of private capital, green capital, public capital, stock of brown energy in the ground, and emissions. Given the numerous challenges to climate change policies the control vector is also five-dimensional. Our solutions are characterized by turnpike property and the optimal policy that accomplishes the objective of keeping the CO2 levels within bound is characterized by a significant proportion of investment in public capital going to mitigation in the initial periods. When initial levels of CO2 are high, adaptation efforts also start immediately, but during the initial period, they account for a smaller proportion of government's public investment.
Other form:	Print version: Atolia, Manoj. Optimal Control of a Global Model of Climate Change with Adaptation and Mitigation. Washington, D.C. : International Monetary Fund, ©2018

Table of Contents:

Cover; Contents; 1. Introduction; 2. Optimal Control Model of Climate Change; 3. Necessary Conditions and Stationary Solutions; 4. Numerical Solutions; 4.1 Discretization and Nonlinear Programming Methods; 4.2 Solutions with Free Terminal States; 4.3 Solutions with Prescribed Terminal States; 4.3.1 Small Initial Capital Stocks and High Emission Stock; 4.3.2 Large Initial Capital Stocks and High Emission Stock; 4.3.3 Small Initial Capital Stocks and Low Emissi on Stock; 5. Conclusions; References; List of Tables; Parameter values; List of Figures; Figure 1; Figure 2; Figure 3; Figure 4

Optimal Control of a Global Model of Climate Change with Adaptation and Mitigation

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