Abstract
A highly simplified time-dependent low-dimensional system has been designed to describe conceptually the interaction of climate and economy. Enhanced emission of carbon dioxide (CO{sub 2}) is understood as the agent that not only favors instantaneous consumption but also causes unfavorable climate changes at a later time. The problem of balancing these two counterproductive effects of CO{sub 2} emissions on a finite time horizon is considered. The climate system is represented by just two parameters, namely a globally averaged near-surface air-temperature and a globally averaged troposheric CO{sub 2} concentration. The costs of abating CO{sub 2} emissions are monitored by a function which depends quadratically on the percentage reduction of emission compared to an `uncontrolled emission` scenario. Parameters are fitted to historical climate data and to estimates from studies of CO{sub 2} abatement costs. Two optimization approaches, which differ from earlier attempts to describe the interaction of economy and climate, are discussed. In the `cost oriented` strategy an optimal emission path is identified which balances the abatement costs and explicitly formulated damage costs. These damage costs, whose estimates are very uncertain, are hypothesized to be a linear function of the time-derivative of temperature. In the `target oriented` strategy an emission path is
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Tahvonen, O;
[1]
Storch, H von;
[2]
Storch, J von
[2]
- Max-Planck-Institut fuer Meteorologie, Hamburg (Germany)
- Oulu Univ. (Finland). Dept. of Economics
Citation Formats
Tahvonen, O, Storch, H von, and Storch, J von.
Economic efficiency of CO{sub 2} reduction programs.
Germany: N. p.,
1993.
Web.
Tahvonen, O, Storch, H von, & Storch, J von.
Economic efficiency of CO{sub 2} reduction programs.
Germany.
Tahvonen, O, Storch, H von, and Storch, J von.
1993.
"Economic efficiency of CO{sub 2} reduction programs."
Germany.
@misc{etde_10121557,
title = {Economic efficiency of CO{sub 2} reduction programs}
author = {Tahvonen, O, Storch, H von, and Storch, J von}
abstractNote = {A highly simplified time-dependent low-dimensional system has been designed to describe conceptually the interaction of climate and economy. Enhanced emission of carbon dioxide (CO{sub 2}) is understood as the agent that not only favors instantaneous consumption but also causes unfavorable climate changes at a later time. The problem of balancing these two counterproductive effects of CO{sub 2} emissions on a finite time horizon is considered. The climate system is represented by just two parameters, namely a globally averaged near-surface air-temperature and a globally averaged troposheric CO{sub 2} concentration. The costs of abating CO{sub 2} emissions are monitored by a function which depends quadratically on the percentage reduction of emission compared to an `uncontrolled emission` scenario. Parameters are fitted to historical climate data and to estimates from studies of CO{sub 2} abatement costs. Two optimization approaches, which differ from earlier attempts to describe the interaction of economy and climate, are discussed. In the `cost oriented` strategy an optimal emission path is identified which balances the abatement costs and explicitly formulated damage costs. These damage costs, whose estimates are very uncertain, are hypothesized to be a linear function of the time-derivative of temperature. In the `target oriented` strategy an emission path is chosen so that the abatement costs are minimal while certain restrictions on the terminal temperature and concentration change are met. (orig.)}
place = {Germany}
year = {1993}
month = {May}
}
title = {Economic efficiency of CO{sub 2} reduction programs}
author = {Tahvonen, O, Storch, H von, and Storch, J von}
abstractNote = {A highly simplified time-dependent low-dimensional system has been designed to describe conceptually the interaction of climate and economy. Enhanced emission of carbon dioxide (CO{sub 2}) is understood as the agent that not only favors instantaneous consumption but also causes unfavorable climate changes at a later time. The problem of balancing these two counterproductive effects of CO{sub 2} emissions on a finite time horizon is considered. The climate system is represented by just two parameters, namely a globally averaged near-surface air-temperature and a globally averaged troposheric CO{sub 2} concentration. The costs of abating CO{sub 2} emissions are monitored by a function which depends quadratically on the percentage reduction of emission compared to an `uncontrolled emission` scenario. Parameters are fitted to historical climate data and to estimates from studies of CO{sub 2} abatement costs. Two optimization approaches, which differ from earlier attempts to describe the interaction of economy and climate, are discussed. In the `cost oriented` strategy an optimal emission path is identified which balances the abatement costs and explicitly formulated damage costs. These damage costs, whose estimates are very uncertain, are hypothesized to be a linear function of the time-derivative of temperature. In the `target oriented` strategy an emission path is chosen so that the abatement costs are minimal while certain restrictions on the terminal temperature and concentration change are met. (orig.)}
place = {Germany}
year = {1993}
month = {May}
}