Optimal Carbon Pricing Based on Dynamical Climate Model
Published in Book of abstracts PGMO DAYS 2023, 2023
In this work, we adapt an optimal pricing framework [1] to the case of carbon pricing by including a climate model. We consider a set of countries N willing to maximize their own utility function modeled by [\forall n \in N, u_n(e_n,P)= b_n(en)−P e_n] with en the CO2 emission level of country $n$, $P$ the price of carbon and $b_n$ is the benefit function of country $n$. These benefit functions are assumed to be sigmoidal and represent the evolution of the gross domestic product (GDP) of the country depending on its CO2 emissions…
Recommended citation: T. Mongaillard, S. Lasaulce, V. Varma, A. Couthures, and E. Sabir, “Optimal Carbon Pricing Based on Dynamical Climate Model,” Book of abstracts PGMO DAYS 2023, p. 82, 2023.
Recommended citation: T. Mongaillard, S. Lasaulce, V. Varma, A. Couthures, and E. Sabir, “Optimal Carbon Pricing Based on Dynamical Climate Model,” Book of abstracts PGMO DAYS 2023, p. 82, 2023.
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