Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/194119
Authors: 
Bretschger, Lucas
Karydas, Christos
Year of Publication: 
2018
Series/Report no.: 
Economics Working Paper Series 18/296
Abstract: 
The paper develops the Basic Climate Economic (BCE) model featuring the core elements of climate economics and climate policy. The BCE model incorporates fossil stock depletion, pollution stock accumulation, endogenous growth, and climate-induced capital depreciation. We first use graphical analysis to show the effects of climate change and climate policy on economic growth. Intuition for the different model mechanisms, the functional forms, and the effects of different climate policies is provided. We then show the model equations in mathematical terms to derive closed-form solutions and to run model simulations relating to the graphical part. Finally, we compare our setup to other models of climate economics.
Subjects: 
Climate change
endogenous growth
climate policy
resource use
stock pollution
JEL: 
Q43
O47
Q56
O41
Persistent Identifier of the first edition: 
Document Type: 
Working Paper
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