Hwang, In Chang; Tol, Richard S.J.; Hofkes, Marjan W. - Department of Economics, School of Business, Management … - 2013
We develop a climate-economy model with active learning. We consider three ways of active learning: improved … observations, adding observations from the past and improved theory from climate research. From the model, we find that the … decision maker invests a significant amount of money in climate research. Expenditures to increase the rate of learning are far …