Centre for Development Economics
Department of Economics, Delhi School of Economics


 Integrated Assessment of
Climate Change Policies


Markus Zimmer

Ifo Institute-Center for Economic Studies
Ifo Center for Energy, Climate and Exhaustible Resources

 Monday, 5th August 2013 at 3:00 PM

Venue : Seminar Room (First Floor)
Department of Economics, Delhi School of Economics

All are cordially invited


The literature on the effects and the effectiveness of (unilateral) climate policy measures has so far relied heavily on work based on computable general equilibrium models (CGEs) and integrated assessment models building on these. While these models are strongly inspired by theoretical economic work and do an excellent job in integrating climatological insights, their calibration and numerical implementation are often based on ad hoc parameterizations drawn from separate pieces of evidence. Moreover, key economic relationships are typically not micro-founded but used in a reduced form format. Estimates from the empirical literature do not always address the informational requirements of CGE modellers nor do they necessarily reflect restrictions that underlie the theoretical model. As a consequence, there is substantial uncertainty over the results of CGE simulations. The IACCP-Project addresses these issues and uses recently developed methods to use structural relationships consistent with theoretical models to econometrically identify the parameters of the models. This ensures that the theoretical and the empirical setups are compatible and thus results in an integrated, internally consistent approach that carries substantial promise for the development and improvement of models used in applied policy work. 

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