2018
DOI: 10.5194/esd-9-525-2018
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The impact of uncertainty on optimal emission policies

Abstract: Abstract. We apply a computational framework for specifying and solving sequential decision problems to study the impact of three kinds of uncertainties on optimal emission policies in a stylized sequential emission problem.We find that uncertainties about the implementability of decisions on emission reductions (or increases) have a greater impact on optimal policies than uncertainties about the availability of effective emission reduction technologies and uncertainties about the implications of trespassing c… Show more

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Cited by 6 publications
(7 citation statements)
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“…This accounts for the fact that, in practice, decisions are not always implemented, be this because global coordination is necessarily imperfect, because global players tend to be in competition and legislations tend to have large inertia or perhaps because some other global challenge (a pandemic or an economic downturn) has taken center stage. As demonstrated in [32], limited effectiveness has a significant impact on optimal GHG emissions policies. Thus, it would be inappropriate to assume that decisions are always implemented with certainty.…”
Section: A Stylized Decision Processmentioning
confidence: 99%
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“…This accounts for the fact that, in practice, decisions are not always implemented, be this because global coordination is necessarily imperfect, because global players tend to be in competition and legislations tend to have large inertia or perhaps because some other global challenge (a pandemic or an economic downturn) has taken center stage. As demonstrated in [32], limited effectiveness has a significant impact on optimal GHG emissions policies. Thus, it would be inappropriate to assume that decisions are always implemented with certainty.…”
Section: A Stylized Decision Processmentioning
confidence: 99%
“…Another caveat is about the notion of stylized decision process itself. We have introduced this notion in [32] and we will discuss it in more detail in section 4.3. The notion is closely related with that of storyline put forward in [10] but there are also important differences.…”
Section: Clarifications Caveats and Related Workmentioning
confidence: 99%
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“…In these systems, OCT tries to find an optimal choice for some control variable by optimizing a specific objective function 17 . Applied to Earth system models, the focus has been set on the design of climate regulators and their impact on climate modification 18,19 . Viability theory (VT) as a subfield of OCT can be stated as an example.…”
Section: Introductionmentioning
confidence: 99%