Showing papers on "Climate commitment published in 2021"
TL;DR: In this article, the authors study the Markov perfect equilibrium in a dynamic game where agents have non-constant time preference, decentralized households determine aggregate savings, and a planner chooses climate policy.
Abstract: We study the Markov perfect equilibrium in a dynamic game where agents have non-constant time preference, decentralized households determine aggregate savings, and a planner chooses climate policy. The article is the first to solve this problem with general discounting and general functional forms. With time-inconsistent preferences, a commitment device that allows a planner to choose climate policy for multiple periods is potentially very valuable. Nevertheless, our quantitative results show that while a permanent commitment device would be very valuable, the ability to commit policy for “only” 100 years adds less than 2% to the value of climate policy without commitment. We solve a log-linear version of the model analytically, generating a formula for the optimal carbon tax that includes the formula in Golosov et al. (2014, Econometrica, 82, 41–88) as a special case. More importantly, we develop new algorithms to solve the general game numerically. Convex damages lead to strategic interactions across generations of planners that lower the optimal carbon tax by 45% relative to the scenario without strategic interactions.
32 citations
TL;DR: In the climate policy literature, it is widely argued that the solution to the credible commitment problem is legislation an... as discussed by the authors, but this is not the case in the case of climate mitigation policy.
15 citations
27 Oct 2021
Abstract: This ScienceBrief Review examines the links between climate change (warming) and the carbon cycle where amplifying feedbacks can strengthen climate change. It synthesises findings from more than 130 peer-reviewed scientific articles gathered using ScienceBrief. The evidence suggests that climate change affects carbon cycle processes in a way that amplifies the increase of CO2 in the atmosphere and causes additional warming. Models suggest that climate change would act to reduce carbon sinks, leading to an additional increase in atmospheric CO2 of about 10 to 70 parts per million (ppm) per degree Celsius of global warming on decadal to century time scales. Additional carbon feedbacks from permafrost thawing and methane hydrates are uncertain but probably add no more than 30% above this range on century timescales. No runaway carbon-climate feedbacks are anticipated this century.
TL;DR: In this article, the authors investigated whether components of climate change adaptation are correlated with people's perception of their own efficacy, which is a critical precursor for adaptive behavioural responses to the threat posed by climate change.
Abstract: People’s perception of their own efficacy is a critical precursor for adaptive behavioural responses to the threat posed by climate change. The present study investigated whether components of clim...