http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2273439

Mitigation and Solar Radiation Management in Climate Change Policies

Vasiliki Manousi
Anastasios Xepapadeas

Abstract:

We couple a spatially homogeneous energy balance climate model with an
economic growth model which incorporates two potential policies against
climate change: mitigation, which is the traditional policy, and
geoengineering. We analyze the optimal policy mix of geoengineering and
mitigation in both a cooperative and a noncooperative framework, in which
we study open loop and feedback solutions. Our results suggests that
greenhouse gas accumulation is relatively higher when geoengineering
policies are undertaken, and that at noncooperative solutions incentives
for geoengineering are relative stronger. A disruption of geoengineering
efforts at a steady state will cause an upward jump in global temperature.

Keywords: Climate Change, Mitigation, Geoengineering, Cooperation,
Differential Game, Open Loop - Feedback Nash Equilibrium

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