Dundee Discussion Papers in Economics 262: Time is running out: the 2°c target and optimal climate policies

Yu-Fu Chen; Michael Funke; Nicole Glanemann

Dundee Discussion Papers in Economics 262: Time is running out: the 2°c target and optimal climate policies

Yu-Fu Chen, Michael Funke, Nicole Glanemann

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Abstract

The quintessence of recent natural science studies is that the 2C target can only be achieved with massive emission reductions in the next few years. The central twist of this paper is the addition of this limited time to act into a non-perpetual real options framework analysing optimal climate policy under uncertainty. The window-of-opportunity modelling setup shows that the limited time to act may spark a trend reversal in the
direction of low-carbon alternatives. However, the implementation of a climate policy is evaded by high uncertainty about possible climate pathways.

Original language	English
Publisher	University of Dundee
Number of pages	28
Publication status	Published - Dec 2011

Publication series

Name	Dundee Discussion Papers in Economics
Publisher	University of Dundee
No.	262
ISSN (Print)	1473-236X

Keywords

Climate policy
CO2
Scenarios
non-perpetual real options

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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DDPE_262

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Dundee Discussion Papers in Economics 262: Time is running out: the 2°c target and optimal climate policies

Abstract

Publication series

Keywords

UN SDGs

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Cite this