Regional Climate Change Policy under Positive Feedbacks and Strategic Interactions
The surface albedo feedback, along with heat and moisture transport from the Equator to the Poles, is associated with polar amplification which is a well-established scientific fact. The present paper extends Brock and Xepapadeas (2017a) to a non-cooperative framework with polar amplification, where...
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ftrepec:oai:RePEc:aue:wpaper:1805 2024-04-14T08:00:28+00:00 Regional Climate Change Policy under Positive Feedbacks and Strategic Interactions William Brock Anastasios Xepapadeas http://wpa.deos.aueb.gr/docs/BX_ERE_SI.pdf unknown http://wpa.deos.aueb.gr/docs/BX_ERE_SI.pdf preprint ftrepec 2024-03-19T10:24:25Z The surface albedo feedback, along with heat and moisture transport from the Equator to the Poles, is associated with polar amplification which is a well-established scientific fact. The present paper extends Brock and Xepapadeas (2017a) to a non-cooperative framework with polar amplification, where regions decide emissions by maximizing own welfare. This can be regarded as a case of regional non-cooperation regarding climate change.Open loop and feedback solutions are derived and compared, in terms of temperature paths and welfare, with the cooperative solution. Carbon taxes which could bridge the gap between cooperative and non-cooperative emissions path are also derived. Finally, the framework is extended to a Ramsey set-up in which it is shown how the regional climate model can be coupled with standard optimal growth models. Numerical simulations confirm the theoretical results and provide insights about the size and the direction of deviations between the cooperative and the non-cooperative solutions. Arctic amplification, Spatial heat and moisture transport, Optimal policy, Emission taxes, Open loop, Feedback Nash Equilibrium Report albedo Arctic Climate change RePEc (Research Papers in Economics) Arctic Nash ENVELOPE(-62.350,-62.350,-74.233,-74.233) |
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Open Polar |
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RePEc (Research Papers in Economics) |
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The surface albedo feedback, along with heat and moisture transport from the Equator to the Poles, is associated with polar amplification which is a well-established scientific fact. The present paper extends Brock and Xepapadeas (2017a) to a non-cooperative framework with polar amplification, where regions decide emissions by maximizing own welfare. This can be regarded as a case of regional non-cooperation regarding climate change.Open loop and feedback solutions are derived and compared, in terms of temperature paths and welfare, with the cooperative solution. Carbon taxes which could bridge the gap between cooperative and non-cooperative emissions path are also derived. Finally, the framework is extended to a Ramsey set-up in which it is shown how the regional climate model can be coupled with standard optimal growth models. Numerical simulations confirm the theoretical results and provide insights about the size and the direction of deviations between the cooperative and the non-cooperative solutions. Arctic amplification, Spatial heat and moisture transport, Optimal policy, Emission taxes, Open loop, Feedback Nash Equilibrium |
format |
Report |
author |
William Brock Anastasios Xepapadeas |
spellingShingle |
William Brock Anastasios Xepapadeas Regional Climate Change Policy under Positive Feedbacks and Strategic Interactions |
author_facet |
William Brock Anastasios Xepapadeas |
author_sort |
William Brock |
title |
Regional Climate Change Policy under Positive Feedbacks and Strategic Interactions |
title_short |
Regional Climate Change Policy under Positive Feedbacks and Strategic Interactions |
title_full |
Regional Climate Change Policy under Positive Feedbacks and Strategic Interactions |
title_fullStr |
Regional Climate Change Policy under Positive Feedbacks and Strategic Interactions |
title_full_unstemmed |
Regional Climate Change Policy under Positive Feedbacks and Strategic Interactions |
title_sort |
regional climate change policy under positive feedbacks and strategic interactions |
url |
http://wpa.deos.aueb.gr/docs/BX_ERE_SI.pdf |
long_lat |
ENVELOPE(-62.350,-62.350,-74.233,-74.233) |
geographic |
Arctic Nash |
geographic_facet |
Arctic Nash |
genre |
albedo Arctic Climate change |
genre_facet |
albedo Arctic Climate change |
op_relation |
http://wpa.deos.aueb.gr/docs/BX_ERE_SI.pdf |
_version_ |
1796300744756822016 |