Complexity and the Economics of Climate Change: A Survey and a Look Forward. Balint, T., Lamperti, F., Mandel, A., Napoletano, M., Roventini, A., & Sapio, A. 2016. Website abstract bibtex We provide a survey of the micro and macroeconomics of climate change from a complexity science perspective and we discuss the challenges ahead for this line of research. We identify four areas of the literature where complex system models have already produced valuable insights: (i) coalition formation and climate negotiations, (ii) macroeconomic impacts of climate-related events, (iii) energy markets and (iv) diffusion of climate-friendly technologies. On each of these issues, accounting for heterogeneity, interactions and disequilibrium dynamics provides a complementary and novel perspective to one of standard equilibrium models. Furthermore, it highlights the potential economic benefits of mitigation and adaptation policies and the risk of under-estimating systemic climate change-related risks.
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title = {Complexity and the Economics of Climate Change: A Survey and a Look Forward},
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abstract = {We provide a survey of the micro and macroeconomics of climate change from a complexity science perspective and we discuss the challenges ahead for this line of research. We identify four areas of the literature where complex system models have already produced valuable insights: (i) coalition formation and climate negotiations, (ii) macroeconomic impacts of climate-related events, (iii) energy markets and (iv) diffusion of climate-friendly technologies. On each of these issues, accounting for heterogeneity, interactions and disequilibrium dynamics provides a complementary and novel perspective to one of standard equilibrium models. Furthermore, it highlights the potential economic benefits of mitigation and adaptation policies and the risk of under-estimating systemic climate change-related risks.},
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author = {Balint, Tomas and Lamperti, Francesco and Mandel, Antoine and Napoletano, Mauro and Roventini, Andrea and Sapio, Alessandro}
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