Catastrophe, Uncertainty, and the Costs of Climate Change DamageEPA Grant Number: U915595
Title: Catastrophe, Uncertainty, and the Costs of Climate Change Damage
Investigators: Wright, Evelyn L.
Institution: Rensselaer Polytechnic Institute
EPA Project Officer: Edwards, Jason
Project Period: September 1, 1999 through September 1, 2002
Project Amount: $45,998
RFA: STAR Graduate Fellowships (1999) RFA Text | Recipients Lists
Research Category: Academic Fellowships , Economics and Decision Sciences , Fellowship - Economics and Business
The objective of this research project is to explore and develop methods for incorporating the possibility of catastrophic consequences into the economic analysis of potential climate -change damages. The current state of scientific knowledge concerning several identified potential catastrophes will be examined, and economically relevant features will be extracted.
The natural scientific literature on several different potential climate catastrophes will be reviewed, and the state-of-the-knowledge concerning their probability and consequence profiles will be analyzed. One particular event—the possibility of changes in global ocean circulation—will be analyzed in particular detail, with a focus on the consequences for the degree of climate variability. The effects of changes in variability on economic costs, and the potential for economic adaptation to climate change, will be analyzed using Bayesian learning and option -value models.