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Replication data for: Watch Your Step: Optimal Policy in a Tipping Climate

Resource Type
  • Lemoine, Derek
  • Traeger, Christian
Publication Date
  • Abstract

    We investigate the optimal policy response to the possibility of abrupt, irreversible shifts in system dynamics. The welfare cost of a tipping point emerges from the policymaker's response to altered system dynamics. Our policymaker also learns about a threshold's location by observing the system's response in each period. Simulations with a recursive, numerical climate-economy model show that tipping possibilities raise the optimal carbon tax more strongly over time. The resulting policy paths ultimately lower optimal peak warming by up to 0.5°C. Different types of posttipping shifts in dynamics generate qualitatively different optimal pretipping policy paths.
  • Is supplement to
    DOI: 10.1257/pol.6.1.137 (Text)
  • Lemoine, Derek, and Christian Traeger. “Watch Your Step: Optimal Policy in a Tipping Climate.” American Economic Journal: Economic Policy 6, no. 1 (February 2014): 137–66.
    • ID: 10.1257/pol.6.1.137 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-13

Lemoine, Derek; Traeger, Christian (2014): Replication data for: Watch Your Step: Optimal Policy in a Tipping Climate. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.