Working Paper: NBER ID: w31112
Authors: Lint Barrage; William D. Nordhaus
Abstract: The present study examines the assumptions, modeling structure, and preliminary results of DICE-2023, the revised Dynamic Integrated Model of Climate and the Economy (DICE), updated to 2023. The revision contains major changes in the carbon and climate modules, the treatment of non-industrial greenhouse gases, discount rates, as well as updates on all the major components. The major changes are a significantly lower level of temperature of the cost-benefit optimal policy, a lower cost of reaching the 2° C target, an analysis of the impact of the Paris Accord, and a major increase in the estimated social cost of carbon.
Keywords: DICE Model; Social Cost of Carbon; Climate Change; Integrated Assessment Models
JEL Codes: C6; H4; Q5
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| improved modeling of climate damages (Q54) | increase in the estimated social cost of carbon (H43) |
| optimal climate policy (Q58) | lower cost of reaching the 2°C target (D61) |
| climate policy (Q58) | economic outcomes (F61) |