Session 5 IAMs

 We meet in C615, Arreniuslabbet, Frescati

For this session, we want everyone to go over closely the integrated assessment model we have constructed. There is a simple two period version of this that you should read first. In a note, we present a simple version of the IAM we are working on. Go over this closely for the last session. Here is a tex and a pdf version. We will present this model during the last session.

In addition, we want you to go over and present in some detail a couple of other IAMs. For all of them, we want to know issues like:

1.      Does the model provide a decentralized equilibrium, a planner solution or both.

2.      How is behavior modeled? If it is based on optimizing agents, what are the objective functions and constraints? If it is a planner solution, what is the planner objective (welfare function)?

3.      Is uncertainty included in the analysis? If so, how?

4.      How are markets, in particular the fuel market, modeled?

5.      How is production and damages modeled and calibrated?

6.      Is there heterogeneity, e.g., different regions? If so, how are they interconnected?

7.      How is carbon circulation and climate modeled?

The models we would like to be covered are

1.      The DICE/RICE models.

2.      PAGE

3.      CETA/MERGE