We construct an endogenous (Bayesian) learning model with fat-tailed uncertainty on the equilibrium climate sensitivity and solve the model with stochastic dynamic programming. In our model a decision maker updates her belief on the climate sensitivity through temperature observations each time...

This study utilizes the bibliometric method on climate policy modeling based on the online version of SCI-E from 1981 to 2013 and SSCI from 2002 to 2013, and summarizes several important research topics and methodologies in the field. Publications referring to climate policy modeling are...

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...

That climate policies are costly is evident and therefore often creates major fears. But the alternative (no action) also has a cost. Mitigation costs and damages incurred depend on what the climate policies are; moreover, they are substitutes. This brings climate policies naturally in the realm...

We assess the optimality of investments in power grid innovation, under both technological options of Super and Smart Grids, using the WITCH model in the version that includes Super-Grids. Super Grids allow producing and trading of electricity generated by large scale concentrated solar power...

The effect of learning on climate policy is not straightforward when climate policy is concerned. It depends not only on the ways that climate feedbacks, preferences, and economic impacts are considered, but also on the ways that uncertainty and learning are introduced. Deep (or fat-tailed)...

We extend the WITCH model to consider the possibility to produce and trade electricity generated by large-scale concentrated solar power plants (CSP) in highly productive areas that are connected to demand centers through High Voltage Direct Current cables. We test the attractiveness of the CSP...

That climate policies are costly is evident and therefore often creates major fears. But the alternative (no action) also has a cost. Mitigation costs and damages incurred depend on what the climate policies are; moreover, they are substitutes. This brings climate policies naturally in the realm...

We introduce endogenous investments for increasing conventional and non-conventional oil extraction capacity in the integrated assessment model WITCH. The international price of oil emerges as the Nash equilibrium of a non-cooperative game. When carbon emissions are not constrained, oil is used...

Many estimates of the social cost of CO2 emissions (SCCO2) can be found in the climate economics literature. However, to date far fewer estimates of the social costs of other greenhouse gases have been published, and many of those that are available are not directly comparable to current...