Climate change challange: Free-riders and geo-engineering

Abstract

In this work an agent-based model with computable general equilibrium integrated assessment models is used to determine if the availability to geo-engineering has an influence on climate negotiations. With a combination of FAIR-DICE and an alternative energy sector an optimal path is calibrated for policymakers which can either invest in green energy or aerosol injections to combat climate change. The altered DICE-model integrates economics, carbon cycle, climate science, and the weighing of costs, resulting in agents guessing benefits of taking steps to slow down climate change. Geo-engineering is seen as a possible cheap alternative solution to slow down global warming, which could mean a slower transition to green energy. This model results show no significant influence on the timing of the green transition in both a competitive and altruistic scenario.