Environmental Economics and Policy Studies

, Volume 20, Issue 1, pp 109–124 | Cite as

The permafrost carbon feedback in DICE-2013R modeling and empirical results

  • Heiko Wirths
  • Joachim Rathmann
  • Peter Michaelis
Research Article


Climate feedback mechanisms that have the potential to intensify global warming have been omitted almost completely in the integrated assessment of climate change and the economy so far. In the present paper, we incorporate the permafrost carbon feedback (PCF) into the well-known integrated assessment model DICE-2013R. We calibrate the parameters for our extended version of DICE-2013R and compute the optimal emission mitigation rates that maximize welfare. Our results indicate that accounting for the PCF leads to an increase in mitigation. Finally, we quantify the economic losses resulting from a climate policy which ignores the impacts of the PCF.


Integrated assessment DICE model Climate feedbacks Permafrost 

JEL Classification

O44 Q54 Q58 


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Copyright information

© Society for Environmental Economics and Policy Studies and Springer Japan 2017

Authors and Affiliations

  • Heiko Wirths
    • 1
  • Joachim Rathmann
    • 2
  • Peter Michaelis
    • 1
  1. 1.Faculty of Business and EconomicsUniversity of AugsburgAugsburgGermany
  2. 2.Faculty of Applied Computer ScienceInstitute of GeographyUniversity of AugsburgAugsburgGermany

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