ENTICE (ENdogenous Technological change with Dynamic Integrated model of Climate and the Economy)

A modifide DICE model to allow for induced innovation in the energy sector.

Endogenous Technological changeDICEinnovationenergy

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Initial contribute: 2021-11-09

Authorship

:  
Department of Public Administration, Center for Environmental Policy Administration, The Maxwell School, Syracuse University, 400 Eggers Hall, Syracuse, NY 13244-1090, USA
:  
dcpopp@maxwell.syr.edu
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Application-focused categoriesHuman-perspectiveEconomic activities

Detailed Description

English {{currentDetailLanguage}} English

Quoted from: Popp, D. . "ENTICE: endogenous technological change in the DICE model of global warming." Journal of Environmental Economics & Management 48.1(2004):742-768. https://doi.org/10.1016/j.jeem.2003.09.002 

I begin by modifying the latest version of Nordhaus’ DICE model [28] to accommodate induced technological change. The DICE model [26][28] is a dynamic growth model of the global economy that includes links between economic activity, carbon emissions, and the climate. A related model, the RICE model, extends the DICE model to include 13 regions of the world. Documentation of the most recent modifications of the model (RICE-99 and DICE-99) can be found in Nordhaus and Boyer [28].6

My model, the ENTICE model (for ENdogenous Technological change), combines features of both models. In particular, following the RICE-99 framework, I model carbon-based energy sources as an input to production, rather than a by-product requiring control. However, I use the global framework of the DICE model, rather than the regional framework of the RICE model. This offers a couple of advantages. Most importantly, a particular goal of this research is to calibrate technological change in a way that is consistent with existing empirical studies. Calibrating a regional model would not only require estimates of induced innovation that varied by region, but also information on flows of knowledge across regions. Given the limited empirical evidence available, calibrating a regional model is left for future research. In addition, the DICE model is simpler in structure, and thus is more accurate for long-time frames [28]. Because of the long-term nature of technological change, trading off regional detail for greater long-term accuracy seems worthwhile.

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David Popp (2021). ENTICE (ENdogenous Technological change with Dynamic Integrated model of Climate and the Economy), Model Item, OpenGMS, https://geomodeling.njnu.edu.cn/modelItem/e4cad257-750a-4cf9-83cd-5e420910139b
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Contributor(s)

Initial contribute : 2021-11-09

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Authorship

:  
Department of Public Administration, Center for Environmental Policy Administration, The Maxwell School, Syracuse University, 400 Eggers Hall, Syracuse, NY 13244-1090, USA
:  
dcpopp@maxwell.syr.edu
Is authorship not correct? Feed back

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