Economics for the climate
Economic models and groundbreaking methods for calculating climate effects and societal costs were subject to discussion in a scientific seminar organized by Mistra-SWECIA.
Climate and economic modeling is one of Mistra-SWECIA´s main research areas. The seminar began on September 5th, with discussions focused on two different modeling methods, both of which will be used in the research programme. One is a classic global economic growth model, which is integrated with a carbon cycle and climate model.“A method for calculating an optimal emissions tax was illustrated during the seminar. Generally in such models, emissions taxes must be high initially and then decrease over time," says Program Director Markku Rummukainen.
Nuanced descriptions
The other method is a groundbreaking modeling effort which, with up to 2000 regions, makes detailed estimates of the interactions between different countries and actors possible. The high level of resolution also makes it possible to produce a more nuanced description of the impacts of climate change. “This is in part about damage to people and capital in conjunction with extreme weather events, changes in production conditions and direct individual so-called utility losses. But it is also about how, for example, trade, migration and insurance mechanisms can limit damage," says Rummukainen.
The seminar also provided an opportunity for researchers from Mistra-SWECIA to establish contact with researchers from GothenburgUniversity and Chalmers.
