Open Meeting Session III
14.01 Environmental Economics, Natural Resources and Climate Change
Form of presentation:
Felix Meier (ifW): "Strategic Interactions and Uncertainty in Integrated Assessment of Climate Change"
Svenn Jennsen (Oslo University): "Pricing Climate Risk"
Holger Kraft (Frankfurt University): "Asset Diversification versus Climate Action"
The session presents recent conceptual and methodological advancements in the integrated assessment of climate change. The papers use a global integrated assessment model of climate change (IAM) to analyze climate policy. Each paper examines a different aspect of climate policy and, for this purpose, pushes the envelope of IAM modeling in a different direction. The first paper uses an analytic integrated assessment model with a closed-form solution to examine a dynamic game governing regional policies. The second paper uses a general IAM to characterize different risk channels driving a “climate policy risk premium” and quantifies the risk premium for a variety of scenarios based on the DICE model. The third paper connects a global IAM, a variety of climate risks, and asset markets to analyze the role of asset diversification for the energy transition.