What is the Nordhaus model?

The Dynamic Integrated Climate-Economy model, referred to as the DICE model or Dice model, is a neoclassical integrated assessment model developed by 2018 Nobel Laureate William Nordhaus that integrates in the neoclassical economics, carbon cycle, climate science, and estimated impacts allowing the weighing of …

What three kinds of analysis are incorporated in the DICE model?

The DICE model (Dynamic Integrated model of Climate and the Economy) is a simplified analytical and empirical model that represents the economics, policy, and scientific aspects of climate change.

How does the DICE model work?

The DICE model views the economics of climate change from the perspective of neoclassical economic growth theory. In this approach, economies make investments in capital, education, and technologies, thereby reducing consumption today in order to increase consumption in the future.

Why is William Nordhaus a famous economist?

William Nordhaus, in full William Dawbney Nordhaus, (born May 31, 1941, Albuquerque, New Mexico, U.S.), American economist who, with Paul Romer, was awarded the 2018 Nobel Prize for Economics for his contributions to the study of long-term economic growth and its relation to climate change.

When did William Nordhaus create the DICE model?

A 1991 paper by Nordhaus developed a steady-state model of both the economy and climate, coming quite close to the DICE model. The model appears to have first been proposed by economist William Nordhaus in a discussion paper for the Cowles Foundation in February 1992.

Who is the creator of the DICE model?

The Dynamic Integrated Climate-Economy model, referred to as the DICE model or Dice model, is a computer-based integrated assessment model developed by 2018 Nobel Laureate William Nordhaus that “integrates in an end-to-end fashion the economics, carbon cycle, climate science, and impacts in a highly aggregated model…

Who is William Nordhaus and what does he do?

William Dawbney Nordhaus (born May 31, 1941) is an American economist and Sterling Professor of Economics at Yale University, best known for his work in economic modelling and climate change. He is one of the laureates of the 2018 Nobel Memorial Prize in Economic Sciences.

How are GHGs included in the DICE model?

The DICE model extends this approach by including the “natural capital” of the climate system. In other words, it views concentrations of GHGs as negative natural capital, and emissions reductions as investments that raise the quantity of natural capital (or reduce the negative capital).