The Model Dimensionality and Its Impacts on the Strategic and Policy Outcomes in IAMs the Findings from the RICE2020 Model

This paper studies the impacts of regional breakdowns or model dimensionality on the model’s optimal solutions. Using the United States (USA) and China (CHN) as the experimental subject, we test the various solutions related to USA and CHN, such as the Cournot-Nash equilibrium and the Lindahl equili...

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Published in	Computational economics Vol. 62; no. 3; pp. 1087 - 1106
Main Author	Yang, Zili
Format	Journal Article
Language	English
Published	New York Springer US 01.10.2023 Springer Springer Nature B.V
Subjects	Analysis Behavioral/Experimental Economics Breakdown Climate change Climatic changes Computer Appl. in Social and Behavioral Sciences Economic Theory/Quantitative Economics/Mathematical Methods Economics Economics and Finance Energy modeling Equilibrium Experiments Externality Game theory Greenhouse gases Math Applications in Computer Science Mitigation Operations Research/Decision Theory Regions Research subjects Simulation Working groups IAM for climate change Model comparison The Cournot-Nash equilibrium The Lindahl equilibrium Modeling methodologies
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Abstract	This paper studies the impacts of regional breakdowns or model dimensionality on the model’s optimal solutions. Using the United States (USA) and China (CHN) as the experimental subject, we test the various solutions related to USA and CHN, such as the Cournot-Nash equilibrium and the Lindahl equilibrium, in the RICE2020 model under three regional breakdowns. Their solutions’ invariance and variances across different model dimensionalities indicate that modeling dimensionality may play a role in the strategic interactions among the regions in GHG mitigation. The simulation results also point out the pitfalls of the model comparisons across IAMs for climate change.
AbstractList	This paper studies the impacts of regional breakdowns or model dimensionality on the model's optimal solutions. Using the United States (USA) and China (CHN) as the experimental subject, we test the various solutions related to USA and CHN, such as the Cournot-Nash equilibrium and the Lindahl equilibrium, in the RICE2020 model under three regional breakdowns. Their solutions' invariance and variances across different model dimensionalities indicate that modeling dimensionality may play a role in the strategic interactions among the regions in GHG mitigation. The simulation results also point out the pitfalls of the model comparisons across IAMs for climate change. This paper studies the impacts of regional breakdowns or model dimensionality on the model's optimal solutions. Using the United States (USA) and China (CHN) as the experimental subject, we test the various solutions related to USA and CHN, such as the Cournot-Nash equilibrium and the Lindahl equilibrium, in the RICE2020 model under three regional breakdowns. Their solutions' invariance and variances across different model dimensionalities indicate that modeling dimensionality may play a role in the strategic interactions among the regions in GHG mitigation. The simulation results also point out the pitfalls of the model comparisons across IAMs for climate change.This paper studies the impacts of regional breakdowns or model dimensionality on the model's optimal solutions. Using the United States (USA) and China (CHN) as the experimental subject, we test the various solutions related to USA and CHN, such as the Cournot-Nash equilibrium and the Lindahl equilibrium, in the RICE2020 model under three regional breakdowns. Their solutions' invariance and variances across different model dimensionalities indicate that modeling dimensionality may play a role in the strategic interactions among the regions in GHG mitigation. The simulation results also point out the pitfalls of the model comparisons across IAMs for climate change.
Audience	Academic
Author	Yang, Zili
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SubjectTerms	Analysis Behavioral/Experimental Economics Breakdown Climate change Climatic changes Computer Appl. in Social and Behavioral Sciences Economic Theory/Quantitative Economics/Mathematical Methods Economics Economics and Finance Energy modeling Equilibrium Experiments Externality Game theory Greenhouse gases Math Applications in Computer Science Mitigation Operations Research/Decision Theory Regions Research subjects Simulation Working groups
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Title	The Model Dimensionality and Its Impacts on the Strategic and Policy Outcomes in IAMs the Findings from the RICE2020 Model
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