Incorporating Investment Uncertainty into Greenhouse Policy Models

B-Tier
Journal: The Energy Journal
Year: 1996
Volume: 17
Issue: 1
Pages: 79-90

Authors (2)

John R. Birge (University of Chicago) Charles H. Rosa (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Greenhouse gas policy decisions require comprehensive understanding of atmospheric, economic, and social impacts. Many studies have considered the effects of atmospheric uncertainty in global warming, but economic uncertainties, have received Less analysis. We consider a key component of economic uncertainty: the return on investments in new technologies. Using a mathematical! programming model, we show that ignoring uncertainty in technology investment policy may lead to decreases as great as 2 percent in overall expected economic activity in the U.S. with even higher losses in possible future scenarios. These results indicate that both federal and private technology investment policies should be based on models explicitly incorporating uncertainty.

Technical Details

RePEc Handle
repec:sae:enejou:v:17:y:1996:i:1:p:79-90
Journal Field
Energy
Author Count
2
Added to Database
2026-01-24