ROLLING THE DICE - AN OPTIMAL TRANSITION PATH FOR CONTROLLING GREENHOUSE GASES

Economic analyses of efficient policies to slow climate change require combining economic and scientific approaches. The present study presents a dynamic integrated climate-economy ('DICE') model. This model can be used to investigate alternative approaches to slowing climate change. Evaluation of five policies suggest that a modest carbon tax would be an efficient approach to slow global warming, while rigid emissions-stabilization approaches would impose significant net economic costs.