Climate policy options are usually elaborated scientifically by Integrated Assessment Models that combine the economic system, the energy system and the climate system in one comprehensive framework. Most of them follow a neo-classical economic paradigm and calculate cost-efficient technological...

Cost-Effectiveness Analysis (CEA) determines climate policies that reach a given climate target at minimum welfare losses. However, when applied to temperature targets under climate sensitivity uncertainty, decision-makers might be confronted with normatively unappealing negative expected values...

The social cost of carbon - or marginal damage caused by an additional ton of carbon dioxide emissions - has been estimated by a U.S. government working group at $21 in 2010. That calculation, however, omits many of the biggest risks associated with climate change, and downplays the impact of...

The literature of welfare-maximising greenhouse gas emission reduction strategies pays remarkably little attention to equity. This paper introduces three ways to consider efficiency and equity simultaneously. The first method, inspired by Kant and Rawls, maximises net present welfare, without...

This paper studies the formation of international climate coalitions by heterogeneous countries. Countries rationally predict the consequences of their membership decisions in climate negotiations. We offer an approach to characterise the equilibrium number of coalitions and their number of...

Several recent studies find that interventions in schools can have important lasting consequences for students, and that schools differ in their contribution to students' learning. However, there is less research investigating how these differences between schools influence longer-term outcomes,...

As an incentive to increase high-impact investment and boost growth, the German Federal Government is planning to introduce a targeted temporary super depreciation allowance to support much-needed green and digital transitions. Using a calibrated multi-sector DSGE model, we find that the...

Recent research in financial economics has shown that rare large disasters have the potential to disrupt financial sectors via the destruction of capital stocks and jumps in risk premia. These disruptions often entail negative feedback effects on the macroeconomy. Research on disaster risks has...

Dieser Kurztext analysiert die jüngsten Äußerungen des Weltklimarats (IPCC) zum gegenwärtigen Erkenntnisstand der Klimaökonomik und gibt Interpretationshilfen, die darauf abzielen, die kritische Urteilskraft im Umgang mit solchen Äußerungen zu stärken.

We provide a survey of the micro and macro economics of climate change from a complexity science perspective and we discuss the challenges ahead for this line of research. We identify four areas of the literature where complex system models have already produced valuable insights: (i) coalition...