Alternative Policies and Sea-Level Rise in the RICE-2009 Model

29 Pages Posted: 5 Aug 2009 Last revised: 31 Aug 2009

William D. Nordhaus

Yale University - Department of Economics; Cowles Foundation, Yale University; National Bureau of Economic Research (NBER)

Date Written: August 29, 2009

Abstract

The present study extends earlier research by presenting the results of a new and updated version of the RICE model (Regional Integrated model of Climate and the Economy), labeled the RICE-2009 model. The model is a regionalized, dynamic model that incorporates an end-to-end treatment of economic growth, emissions, climate change, damages, and emissions controls. The model allows projections of what will occur with no policies, with efficient policies be, how nations can undertake policies to limit climate change (in the current runs to 2°C), and the impacts of limited participation. These new estimates indicate that coordinated international policies have a substantial economic benefit. The optimal carbon tax is estimated to be $29 per ton carbon ($8 per ton CO_2) for 2010 in 2005 prices. The economic optimum would limit global temperature rise to an average of 2.5°C over 1900 levels for the 22nd and 23rd century.

Keywords: climate change economics, environmental policy, economic growth

JEL Classification: Q54, Q5, O4

Suggested Citation

Nordhaus, William D., Alternative Policies and Sea-Level Rise in the RICE-2009 Model (August 29, 2009). Cowles Foundation Discussion Paper No. 1716. Available at SSRN: https://ssrn.com/abstract=1443205

William D. Nordhaus

Yale University - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8268
United States
203-432-3598 (Phone)
203-432-5779 (Fax)

Cowles Foundation, Yale University ( email )

Box 208281
New Haven, CT 06520-8281
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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