Carnegie Institution of Washington
260 Panama St.,
Stanford, CA 94305
NBER Working Papers and Publications
|September 2015||Climate Tipping Points and Solar Geoengineering|
with Garth Heutel, Juan Moreno Cruz: w21589
We study optimal climate policy when climate tipping points and solar geoengineering are present. Solar geoengineering reduces temperatures without reducing greenhouse gas emissions. Climate tipping points are irreversible and uncertain events that cause large damages. We analyze three different rules related to the availability of solar geoengineering: a ban, using solar geoengineering as insurance against the risk of tipping points, or using solar geoengineering only as remediation in the aftermath of a tipping point. We model three distinct types of tipping points: two that alter the climate system and one that yields a direct economic cost. Using an analytic model, we find that an optimal policy, which minimizes expected losses from the tipping point, includes both emissions reductions...
Published: Garth Heutel & Juan Moreno-Cruz & Soheil Shayegh, 2016. "Climate Tipping Points and Solar Geoengineering," Journal of Economic Behavior & Organization, . citation courtesy of
|July 2015||Solar Geoengineering, Uncertainty, and the Price of Carbon|
with Garth Heutel, Juan Moreno Cruz: w21355
We consider the socially optimal use of solar geoengineering to manage climate change. Solar geoengineering can reduce damages from atmospheric greenhouse gas concentrations, potentially more cheaply than reducing emissions. If so, optimal policy includes less abatement than recommended by models that ignore solar geoengineering, and the price of carbon is lower. Solar geoengineering reduces temperature but does not reduce atmospheric or ocean carbon concentrations, and that carbon may cause damages apart from temperature increases. Finally, uncertainty over climate change and solar geoengineering alters the optimal deployment of solar geoengineering. We explore these issues with an analytical model and a numerical simulation. The price of carbon is 30%-45% lower than the price recommended...
Published: Garth Heutel & Juan Moreno-Cruz & Soheil Shayegh, 2017. "Solar Geoengineering, Uncertainty, and the Price of Carbon," Journal of Environmental Economics and Management, . citation courtesy of