ISSN:
1573-1502
Keywords:
climate change
;
uncertainty
;
irreversibility
;
intergenerational
;
stochastic dynamic programming
;
resource extraction
Source:
Springer Online Journal Archives 1860-2000
Topics:
Energy, Environment Protection, Nuclear Power Engineering
,
Economics
Notes:
Abstract A three-generation planning model incorporating uncertain climate change is developed. Each generation features a production activity based on capital and an exhaustible resource. An irreversible climate change may occur in period two or three, reducing the productivity for this and the remaining generation. The model is solved by stochastic dynamic programming. If the climate impact and climate change probability is constant, the optimal period one (and two) resource extraction is larger than for the reference case of climate stability. If, however, climate impact and climate change probability increases with increased aggregate resource use, this result is reversed.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1026442931362
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