MAS3573 : Climate change- Chemistry

MAS3573

Chemistry

Question (a) Business as usual. Set the control parameter ?(t) to zero for each time period. Calculate the optimum Savings path using solver. Set up a square which is the sum of discounted social welfare over the next 300 years that is to 2315. Take as your control variables Savings rate from now till 2115 after 2115 set the saving rate to be the same as the 2115 value. Copy and paste graphs from Excell of the (1) atmospheric concentration of CO 2 , and the temperature each year till 2200 (on the same graph with primary and secondary axis), (2) the control parameter and the emissions each year, (3) The cost of emission control as a percentage of GDP. (b) Now calculate the optimum emission reduction path using solver and Nordhaus parameters.. As before set up a square which is the sum of discounted social welfare over the next 300 years. Take as your control variables ?(t) and the Savings rate from now till 2115 with subsequent years taking the 2115 value. Use solver to maximise this with the constraints that 0< ?(t)<1. Copy and paste graphs from Excell of: (1) atmospheric concentration of CO 2 , and the temperature each year till 2215 as well as the baseline temperature and CO 2 concentration from (a) (on the same graph with primary and secondary axis); (2) the control parameter and the emissions each year for the same time period; (3) The cost of emission control as a percentage of GDP. (c) Now calculate the optimum emission reduction path using solver and Stern’s parameters. Go back to using the original world population path in (b). Set ?=1.1 and ?=0.001. Use the same method as in (b) to find the optimal control and savings paths. As above graph (1), (2) and (3). Your graphs for T and CO 2 should have your results here as well as comparisons with the baseline and the standard Nordhaus results in (b).