Skip to main content
SpringerLink
Log in
Book cover

The Coupling of Climate and Economic Dynamics pp 1–34Cite as

Linking Climate and Economic Dynamics

  • Chapter

Part of the book series: Advances in Global Change Research ((AGLO,volume 22))

Abstract

This chapter presents in a broad perspective the links that exist between climate and economic dynamics. We deal in particular with the interactions and feedbacks that may link these two dynamical systems and with possible approaches to modelling, and ultimately controlling, them in order to reach a sustainable development path. The paper provides a general introduction to the different chapters that constitute the rest of the book.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Alcamo, J., Bouwman, A., Edmonds, J., Grubler, A., Morita, T., and Sugandhy, A. (1995). An evaluation of the IPCC IS92 emission scenarios. In J.T. Houghton, L.G. Meira Filho, J. Bruce, Hoesung Lee, B.A. Callander, E. Haites, N. Harris and Maskell, K., editors, Climate Change 1994, Radiative Forcing of Climate Change and An Evaluation of the IPCC IS92 Emission Scenarios, pages 233–304, Cambridge, UK. Cambridge University Press.

    Google Scholar 

  • Alexandratos, N. (1995). World agriculture towards 2010, an FAO Study. J. Wiley & Sons, Chichester, UK.

    Google Scholar 

  • Ambrosi, P., Hourcade, J.-C, Hallegatte, S., Lecocq, F., Dumas, P., and Duong, M. Ha (2003). Optimal control models and elicitation of attitudes towards climate damages. Environmental Modeling and Assessment, 8(3): 133–148.

    Article  Google Scholar 

  • Arrhenius, S. (1896). On the influence of carbonic acid in the air upon the temperature on the ground. Phil. Mag., 5(251):237–276.

    Google Scholar 

  • Arrow, K., Bolin, B., Costanza, R., Dasgupta, P., Folke, C, Holling, C. S., Jansson, B-O., Levin, S., Mler, K-G., Perrings, C, and Pimentel, D. (1995). Economic growth, carrying capacity, and the environment. Science, 268:520–521.

    Article  CAS  Google Scholar 

  • Arrow, K.J. (1999). Discounting and Intergenerational Equity, chapter Discounting, Morality, and Gaming. Resources for the Future, Washington D.C.

    Google Scholar 

  • Baldwin, R. (1998). Does sustainability require growth? In Goldin, I. and Winters, L. A., editors, The Economics of Sustainable Development, pages 51–79. Cambridge University Press.

    Google Scholar 

  • Bernard, A., Haurie, A., Vielle, M., and Viguier, L. (2002). A Two-level Dynamic Game of Carbon Emissions Trading Between Russia, China, and Annex B Countries. Working Paper 11, NCCR-WP4, Geneva. to appear in Journal of economic dynamics and control

    Google Scholar 

  • Carraro, C. and Filar, J. A. (1995). Control and Game-Theoretic Models of the Environment, volume 2 of Annals of the International Society of Dynamic Games. Birhaüser, Boston.

    Book  Google Scholar 

  • Castles, I. and Henderson, D. (2003a). The IPCC emission scenarios: An economic-statistical critique. Energy & environment, 14(2–3): 159–185.

    Article  Google Scholar 

  • Castles, I. and Henderson, D. (2003b). Economics, emissions scenarios and the work of the IPCC. Energy & environment, 14(4):415–435.

    Article  Google Scholar 

  • Chao, H.-P. and Peck, S. (2000). Greenhouse gas abatement: how much? and who pays? Resource and Energy Economics, 22(1): 1–20.

    Article  Google Scholar 

  • Chichilnisky, G. (1996). An axiomatic approach to sustainable development. Social Choice and Welfare, 13(2):231–257.

    Article  Google Scholar 

  • Chichilnisky, G., Heal, G., and Starrett, D. (2000). Equity and efficiency in environmental markets: global trade in carbon emissions. In Chichilnisky, G. and Heal, G., editors, Environmental Markets, pages 46–67. Colombia University Press.

    Google Scholar 

  • Cowling, S.A., Cox, P.M., Betts, R.A., Ettwein, V.J., Jones, C.D., Maslin, M.A., and Spall, S.A. (2004). Contrasting simulated past and future responses of the amazonian forest to atmospheric change. Philosophical Transactions (Royal Society of London): Biological Sciences, 359:539–547.

    Article  CAS  Google Scholar 

  • Crowley, T.J. and Berner, R.A. (2001). Paleoclimate: CO2 and climate change. Science, 292:870–872.

    Article  CAS  Google Scholar 

  • Darmstadter, J. (1971). Energy in the world economy. John Hopkins Press, Baltimore.

    Google Scholar 

  • Dasgupta, S., Laplante, B., Wang, H., and Wheeler, D. (2002). Confronting the environmental kuznets curve. Journal of Economic Perspectives, 16:147–168.

    Article  Google Scholar 

  • Drouet, L., Beltran, C., Edwards, N.R., Haurie, A.B., Vial, J.-P., and Zachary, D.S. (2004). An oracle method to couple climate and economic dynamics. In Haurie, A. and Viguier, L., editors, Coupling climate and economic dynamics. Kluwer Academic Publishers.

    Google Scholar 

  • Drouet, L., Edwards, N.R., and Haurie, A. (2005). Coupling climate and economic models: A convex optimization approach. mimeo. submitted to Environmental Modeling and Assessment.

    Google Scholar 

  • Eckaus, R. S. (1994). Potential CO2 emissions: Alternatives to the IPCC projections. MIT Joint Program on the Science and Policy of Global Change.

    Google Scholar 

  • Edwards, N.R. and Marsh, R. (2004). Uncertainties due to transport-parameter sensitivity in an efficient 3-d ocean-climate model. Climate Dynamics. submitted.

    Google Scholar 

  • Enting, I.G., Wigley, T.M.L., and Heiman, M. (1994). Future emissions and concentrations of carbon dioxide: Key ocean/atmosphere/land analyses. Technical paper 31, Division of Atmospheric Research, CSIRO, Australia. electronic edition 2001.

    Google Scholar 

  • Etemad, B., Bairoch, P., Luciani, J., and Toutain, J.C. (1991). World energy production 1800 – 1985. Libraire Droz, Genève.

    Google Scholar 

  • Falkowski, P., Scholes, R. J., Boyle, E., Canadell, J., Canfield, D., Elser, J., Gruber, N., Hibbard, K., Hgberg, P., and Linder, S. (2000). The global carbon cycles: a test of our knowledge of earth as a system. Science, 290:291–296.

    Article  CAS  Google Scholar 

  • Fisher, G., Shah, M., and Velthuizen, H. (2002). Climate Change and Agricultural Vulnerability. IIASA Pub. Dept., Vienna, remaprint edition.

    Google Scholar 

  • Füssel, H.-M. and Klein, R.J.T. (2004). Climate change vulnerability assessments: an evolution of conceptual thinking. Climatic Change, to appear.

    Google Scholar 

  • Füssel, H.-M., Toth, F.L., van Minnen, J.G., and Kaspar, F. (2003). Climate impact response functions as impact tools in the tolerable windows approach. Climatic Change, 56:91–117.

    Article  Google Scholar 

  • Goosse, H., Selten, F.M., Haarsma, R.J., and Opsteegh, J.D. (2001). Decadal variability in high northern latitudes as simulated by an intermediate-complexity climate model. Annals of Glaciology, 33:525–532.

    Article  Google Scholar 

  • Gordon, C., Cooper, C., Senior, C.A., Banks, H., Gregory, J.M., Johns, T.C., Mitchell, J.F.B., and Wood, R.A. (2000). The simulation of SST, sea-ice extents and ocean heat transports in a version of the Hadley Centre coupled model without flux adjustments. Climate Dynamics, 16:147–168.

    Article  Google Scholar 

  • Greppin, H., Agosti, R. Degli, and Priceputu, A.M. (2002). From viability envelopes to sustainable society: a place for various and efficient economical and cultural expressions on the planet. Archs. Sci. Genève, 55:125–148.

    Google Scholar 

  • Grossman, G. M. and Krueger, A. B. (1991). Environmental impacts of a north american free trade agreement. Working Paper 3914, National Bureau of Economic Research, Cambridge MA.

    Google Scholar 

  • Guesnerie, R. (2003). Kyoto et l’économie de l’effet de serre. La documentation française, Paris.

    Google Scholar 

  • Hargreaves, J.C., Annan, J.D., Edwards, N.R., and Marsh, R. (2004). Climate forecasting using an intermediate complexity earth system model and the ensemble kalman filter. Climate Dynamics. Submitted.

    Google Scholar 

  • Hasselman, K., Latif, M., Hooss, G., Azar, C, Egenhofer, O., Jaeger, C.C., Johannessen, O.M., Kemfert, C., Welp, M., and Wokaun, A. (2003). The challenge of long-term climate change. Science, 302:1923–1926.

    Article  Google Scholar 

  • Haurie, A. (2002). Turnpikes in multi-discount rate environments and GCC policy evaluation. In Zaccour, G., editor, Optimal Control and Differential Games: essays in Honor of Steffen Jorgensen, volume 5 of Advances in Computational Management Science. Kluwer Academic Publishers.

    Google Scholar 

  • Haurie, A. (2003). Integrated assessment modeling for global climate change: an infinite horizon optimization viewpoint. Environmental Modeling and Assessment, 8(3):117–132.

    Article  Google Scholar 

  • Haurie, A. and Moresino F. (2005). A multigenerational game model to analyze sustainable development. Annals of Operations Research. submitted.

    Google Scholar 

  • Haurie, A. and Viguicr, L. (2003). A stochastic game of carbon emissions trading. Environmental Modeling and Assessment, 8(3):239–248.

    Article  Google Scholar 

  • Hogan, W.W. and Jorgenson, D.W. (1991). Productivity trends and the costs of reducing carbon dioxide emissions. The Energy Journal, 12:67–85.

    Article  Google Scholar 

  • Huntington, H. G. and Weyant, J. P. (2002). Modeling energy markets and climate change policy. Technical Report EMF OP 52, Energy Modeling Forum, Stanford University, Stanford, CA.

    Google Scholar 

  • IBRD (1992). World Development Report 1992: Development and the Environment. Oxford University Press, New York.

    Google Scholar 

  • IPCC (2000). Special Report on Emissions Scenarios. Working Group III, Intergovernmental Panel on Climate Change (IPCC). Cambridge University Press, Cambridge.

    Google Scholar 

  • IPCC (2001). Climate Change 2001: the scientific basis. Summary for policymakers and technical summary of the Working Group I report. IPCC Working Group I. Cambridge University Press, Cambridge.

    Google Scholar 

  • Joos, F. and Prentice, I.C. (2004). A paleo-perspective on changes in atmospheric CO 2 and climate, In The Global Carbon Cycle: Integrating Humans, Climate and the Natural World, C. Field and M. Raupach (Eds.), SCOPE series 62, Island Press, Washington DC, USA, 165–186.

    Google Scholar 

  • Jorgenson, D.W. and Wilcoxen, P.J. (1993). Reducing US carbon emissions: An econometric general equilibrium assessment. Resource and Energy Economics, 15:7–25.

    Article  Google Scholar 

  • Kaufmann, R. K. (2004). The mechanisms for autonomous energy efficiency increases: A cointegration analysis of the US energy/GDP ratio. The energy Journal, 25(l):63–86.

    Google Scholar 

  • Knutti, R., Stocker, T.F., Joos, F., and Plattner, G-K. (2002). Constraints on radiative forcing and future climate change from observations and climate model ensembles. Nature, 416:719–722.

    Article  CAS  Google Scholar 

  • Kremer, M. (1993). Population growth and technical change, one million b.c. to 1990. Quarterly Journal of Economics, 108(3):681–716.

    Article  Google Scholar 

  • Labriet, M. and Loulou, R. (2003). Coupling climate damages and GHG abatement costs in a linear programming framework. Environmental Modeling & Assessment, 8(3):261–274.

    Article  Google Scholar 

  • Larme, M. and Liski, M. (January 21, 2003). Trends and breaks in per-capita carbon dioxide emissions, 1870–2028. unpublished manuscript.

    Google Scholar 

  • Lecocq, Franck (2000). Spatial and temporal distribution of long term public policy costs under uncertainty, the case of climate change. PhD thesis, Ecole Nationale des Eaux et des Forêts, Paris.

    Google Scholar 

  • Leggett, J., Pepper, W.J., and Swart, R.J. (1992). Emissions Scenarios for IPCC: An Update, chapter In J.T. Houghton and B.A. Callander and S.K. Varney (Eds.), Climate Change 1992. The Supplementary Report to the IPCC Scientific Assessment, pages 69–95. Cambridge University Press, Cambridge, UK.

    Google Scholar 

  • Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(l):3–42.

    Article  Google Scholar 

  • Luterbacher, J., Dietrich, D., Xoplaki, E., Grosjean, M., and Wanner, H. (2004). European seasonal and annual temperature variability, trends and extremes since 1500. Science, 303:1499–1503.

    Article  CAS  Google Scholar 

  • Maddison, A. (1995). Monitoring the world economy, 1820–1992. OECD, Paris.

    Google Scholar 

  • Manne, A. and Richels, R. (2003). Market exchanges rates or purchasing power parity: Does the choice make a difference in the climate debate? unpublished manuscript.

    Google Scholar 

  • Marland, G., Andres, R. J., Boden, T. A., Johnston, C., and Brenkert, A. (1999). Global, regional, and national CO2 emission estimates from fossil fuel burning, cement production, and gas flaring: 1751–1996 (revised march 1999). Technical Report Dataset NDP030, Carbon Dioxide Information and Analysis Center (CDIAC), Oak Ridge Laboratory, Oak Ridge.

    Google Scholar 

  • Nordhaus, W. D. (1994). Managing the Global Commons: The Economics of Climate Change. MIT Press, Cambridge, MA.

    Google Scholar 

  • Nordhaus, W. D. and Boyer, J. (2000). Warming the World: Economic Models of Global Warming. MIT Press, Cambridge, MA.

    Google Scholar 

  • Matson, P.A., Parton, W.J., Power, A.G. and Swift M.J. (1997). Agriculture intensification and ecosystems properties. Science, 277:504–509.

    Article  CAS  Google Scholar 

  • Peixoto, J.P. and Oort, A.H. (1992). Physics of Climate. Springer, New York.

    Google Scholar 

  • Phelps, E.S. and Polak, R. (1968). On second-best national saving and game-equilibrium growth. Review of Economic Studies, 35(2):185–199.

    Article  Google Scholar 

  • Portney, P.R. and Weyant, J.P. (1999). Discounting and Intergenerational Equity. Resources for the Future, Washington D.C.

    Google Scholar 

  • Ramade, J.F. (2002). Dictionnaire encyclopédique de l’écologie et des sciences de l’environnement. Dunod, Paris.

    Google Scholar 

  • Ramsey, F. P. (1928). A mathematical theory of saving. Economic Journal, 38(152):543–59.

    Article  Google Scholar 

  • Reilly, J.M. and Schimmelpfenning, D. (1999). Agricultural impact assessment, vulnerability and the scope for adaptation. Climatic Change, 43:745–788.

    Article  Google Scholar 

  • Reilly, J.M. and Schimmelpfenning, D. (2000). Irreversibility, uncertainty, and learning: portraits of adaptation to long-term climate change. Climatic Change, 45:253–278.

    Article  Google Scholar 

  • Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5):S71–S102.

    Article  Google Scholar 

  • Rougier, J. (2004). Bayesian prediction of climate using ensembles of simulator evaluations. Climatic Change. submitted.

    Google Scholar 

  • Ruddiman, W.F. (2003). The anthropogenic greenhouse era began thousands of years ago. Climatic Change, 61(3):261–293.

    Article  CAS  Google Scholar 

  • Schär, C., Vidale, P.L., Lüthi, D., Frei, C., Häberli, C., Liniger, M. A., and Appenzeller, C. (2004). The role of increasing temperature variability for european summer heat waves. Nature, 427:332–336.

    Article  Google Scholar 

  • Schellnhuber, H.J. and Wenzel, V. (1998). Earth System Analysis: Integrative Science for Sustainability. Springer verlag, Berlin.

    Book  Google Scholar 

  • Schipper, L., Murtishaw, S. G., and Unander, F. (2001). International comparisons of sectoral carbon dioxide emissions using a cross-country decomposition technique. The Energy Journal, 22(2): 35–74.

    Article  Google Scholar 

  • Schmalensee, R., Stocker, T. M., and Judson, R. A. (1998). World carbon dioxide emissions: 1950–2050. The Review of Economics and Statistics, 80(1):15–27.

    Article  Google Scholar 

  • Seiden, T. M., Forrest, A. S., and Lockhart, J. E. (1999). Analyzing reductions in U.S. air pollution emissions: 1970 to 1990. Land Economics, 75:1–21.

    Article  Google Scholar 

  • Solow, R. M. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70:65–94.

    Article  Google Scholar 

  • Stern, D. I. (2003). The rise and fall of the environmental kuznets curve. Working Paper in Economics 0302, Rensselaer Polytechnic Institute. Troy, New York.

    Google Scholar 

  • Stern, D. I. and Common, M. S. (2001). Is there an environmental kuznets curve for sulfur? Journal of Environmental Economics and Environmental Management, 41:162–178.

    Article  Google Scholar 

  • Stern, D. I., Common, M. S., and Barbier, E. B. (1996). Economic growth and environmental degradation: the environmental kuznets curve and sustainable development. World Development, 24:1151–1160.

    Article  Google Scholar 

  • Toniazzo, T., Gregory, J.M., and Huybrechts, P. (2004). Climatic impact of a greenland deglaciation and its possible irreversibility. Journal of Climate, 17(l):21–33.

    Article  Google Scholar 

  • Toth, F.L. (2004). Coupling climate and economic dynamics: recent achievements and unresolved problems. In Haurie, A. and Viguier, L., editors, Coupling climate and economic dynamics. Kluwer Academic Publishers.

    Google Scholar 

  • Toth, F.L., Bruckner, T., Füssel, H.-M., Leimbach, M., and Petschel-Held, G. (2003a). Integrated assessment of long-term climate policies: Part 1 — model presentation. Climatic Change, 56:37–56.

    Article  Google Scholar 

  • Toth, F.L., Bruckner, T., Füssel, H.-M., Leimbach, M., and Petschel-Held, G. (2003b). Integrated assessment of long-term climate policies: Part 2 — model results and uncertainty analysis. Climatic Change, 56:57–72.

    Article  Google Scholar 

  • Viguier, L. (1999). Emissions of SO2, NOx and CO2 in Transition Economies: Emission Inventories and Divisia Index Analysis. The Energy Journal, 20(2): 59–87.

    Article  Google Scholar 

  • Viguier, L., Babiker, M., and Reilly, J. (2003). The Costs of the Kyoto Protocol in the European Union. Energy Policy, 31(5):459–481.

    Article  Google Scholar 

  • Viguier, L., Vielle, M., Haurie, A., and Bernard, A. (2004). A two-level computable equilibrium model to assess the strategic allocation of emission allowances within the european union. Computers & Operations Research. to appear.

    Google Scholar 

  • Weaver, A.J., Eby, M., Wiebe, E.C., Bitz, C.M., Duffy, P.B., Ewen, T.L., Fanning, A. F., Holland, M.M., MacFadyen, A., Matthews, H.D., Meissner, K.J., Saenko, O., Schmittner, A., Wang, H., and Yoshimori, M. (2001). The UVic earth system climate model: Model description, climatology, and applications to past, present and future climates. Atmos-Ocean, 39:361–428.

    Article  Google Scholar 

  • Wilson, C. (2004). Fertility below replacement level. Science, 304:207–209.

    Article  CAS  Google Scholar 

  • Wright, E.L. and Erickson, J.D. (2003). Incorporating catastrophes into integrated assesssment: science, impacts, and adaptation. Climatic Change, 57:265–286.

    Article  Google Scholar 

Download references

Authors
  1. Neil Edwards
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Hubert Greppin
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Alain Haurie
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Laurent Viguier
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. University of Geneva, Switzerland

    Alain Haurie

  2. Ecole Polytechnique Fédérale de Lausanne (EPFL), Switzerland

    Laurent Viguier

Rights and permissions

Reprints and permissions

Copyright information

© 2005 Springer

About this chapter

Cite this chapter

Edwards, N., Greppin, H., Haurie, A., Viguier, L. (2005). Linking Climate and Economic Dynamics. In: Haurie, A., Viguier, L. (eds) The Coupling of Climate and Economic Dynamics. Advances in Global Change Research, vol 22. Springer, Dordrecht. https://doi.org/10.1007/1-4020-3425-3_1

Download citation

Publish with us

Policies and ethics

Search

Navigation