Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202445 
Year of Publication: 
2019
Series/Report no.: 
Volkswirtschaftliche Diskussionsreihe No. 337
Publisher: 
Universität Augsburg, Institut für Volkswirtschaftslehre, Augsburg
Abstract: 
A growing body of literature from the natural and the social sciences indicates that the rate of temperature increase is another key driver of total climate damages, next to the absolute increase in temperature compared to the pre-industrial level. Nonetheless, the damage functions employed in integrated assessment models that aim at studying the economics of climate change are usually based on the absolute temperature increase alone. Hence, these models neglect additional damag-es that will occur if the rate of temperature increase exceeds a certain threshold that overstrains the adaptive capacities of ecological and social systems. In the present paper, we implement such rate-related damages in the well-known integrated assessment model DICE-2016R. Using the resulting model variant DICE-RD we show for several different scenarios that an insufficient climate policy that ignores rate-related damages can lead to substantial economic losses.
Subjects: 
integrated assessment
DICE model
climate policy
rate of temperature increase
JEL: 
O44
Q54
Q58
Document Type: 
Working Paper

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