The Social Cost of Stochastic and Irreversible Climate Change

@article{Cai2013TheSC,
  title={The Social Cost of Stochastic and Irreversible Climate Change},
  author={Y. Cai and K. Judd and Thomas S. Lontzek},
  journal={NBER Working Paper Series},
  year={2013}
}
There is great uncertainty about the impact of anthropogenic carbon on future economic wellbeing. We use DSICE, a DSGE extension of the DICE2007 model of William Nordhaus, which incorporates beliefs about the uncertain economic impact of possible climate tipping events and uses empirically plausible parameterizations of Epstein-Zin preferences to represent attitudes towards risk. We find that the uncertainty associated with anthropogenic climate change imply carbon taxes much higher than… Expand
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