Macroeconomics of Climate Change

  1. Modeling the Macroeconomics of Climate Change
    1. Integrated Assessment Models
      1. Structure and Components
        1. Climate Module
          1. Economic Module
            1. Damage Functions
              1. Policy Module
              2. The Social Cost of Carbon
                1. Definition and Calculation
                  1. Role of the Discount Rate
                    1. Time Preference
                      1. Intergenerational Equity
                        1. Declining Discount Rates
                        2. Uncertainty and Equity Weighting
                          1. Sensitivity Analysis
                            1. Distributional Considerations
                              1. Fat-Tail Risks
                            2. Major IAM Frameworks
                              1. DICE Model
                                1. PAGE Model
                                  1. FUND Model
                                  2. Limitations of IAMs
                                    1. Simplifying Assumptions
                                      1. Treatment of Uncertainty and Tipping Points
                                        1. Representation of Regional Heterogeneity
                                          1. Damage Function Limitations
                                        2. Computable General Equilibrium Models
                                          1. Sectoral Analysis of Climate Policies
                                            1. Sectoral Output and Employment Effects
                                              1. Input-Output Linkages
                                                1. Factor Reallocation
                                                2. Trade and Competitiveness Effects
                                                  1. International Trade Flows
                                                    1. Carbon Leakage Analysis
                                                      1. Terms of Trade Effects
                                                    2. Dynamic Stochastic General Equilibrium Models
                                                      1. Incorporating Climate Shocks
                                                        1. Stochastic Climate Events
                                                          1. Endogenous Technological Change
                                                            1. Learning-by-Doing
                                                            2. Analyzing Policy Trade-offs
                                                              1. Short-term vs. Long-term Effects
                                                                1. Uncertainty and Expectations
                                                                  1. Optimal Policy Design
                                                                2. Network Models and Agent-Based Models
                                                                  1. Capturing Complex Interactions
                                                                    1. Feedback Loops
                                                                      1. Heterogeneous Agent Behavior
                                                                        1. Spatial Interactions
                                                                        2. Modeling Systemic Risk
                                                                          1. Cascading Failures
                                                                            1. Contagion Effects
                                                                              1. Resilience Analysis

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                                                                          4. Economic Valuation of Climate Impacts

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                                                                          6. Fiscal Policy for Climate Mitigation and Adaptation