Chen, Yu-Fu

Funke, Michael

Glanemann, Nicole

English

The quintessence of recent natural science studies is that the 2C target can only be achieved with massive emission reductions in the next few years. The central twist of this paper is the addition of this limited time to act into a non-perpetual real options framework analysing optimal climate policy under uncertainty. The window-of-opportunity modelling setup shows that the limited time to act may spark a trend reversal in thedirection of low-carbon alternatives. However, the implementation of a climate policy is evaded by high uncertainty about possible climate pathways

University of Dundee Online Publications

Dundee Discussion Papers in Economics 262:Time is running out: the 2°c target and optimal climate policies

https://discovery.dundee.ac.uk/files/58695995/DDPE_262.pdf

Dundee Discussion Papers in Economics 262:Time is running out: the 2°c target and optimal climate policies

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University of Dundee Online Publications

University of Dundee Online Publications