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Climatic Change

, Volume 78, Issue 1, pp 157–179 | Cite as

Optimal Technology R&D in the Face of Climate Uncertainty

  • Erin BakerEmail author
  • Leon Clarke
  • John Weyant
Article

Abstract

This paper explores optimal near-term technology R&D in the face of uncertain damages caused by the buildup of greenhouse gases. The paper puts particular emphasis on understanding how optimal near-term R&D expenditures might vary based on the technologies pursued in the R&D program. The exploration is conducted in the context of varying impacts from R&D on the global abatement cost function. The R&D planning problem is considered first within a theoretical framework and is then pursued in a stylized application using the DICE model. The paper provides intuition into the circumstances under which near-term technology R&D might increase or decrease under uncertainty, thereby serving as a hedge against climate uncertainty.

Keywords

Emission Reduction Abatement Cost Optimal Technology Abatement Level Climate Damage 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media, Inc. 2006

Authors and Affiliations

  1. 1.University of MassachusettsAmherstUSA
  2. 2.Joint Global Change Research InstitutePacific Northwest National LaboratoryCollege ParkUSA
  3. 3.Stanford UniversityStanfordUSA

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