This course introduces students to the construction and simulation of Integrated Assessment Models (IAMs) linking macroeconomics and climate dynamics. Through lectures and practical classes (PCs), students learn to implement growth and climate models such as RBC, Heutel, and DICE in Dynare. The course covers stochastic and deterministic solution methods, from perturbation techniques to perfect-foresight simulations. Emphasis is placed on understanding policy implications of carbon pricing, damages, and abatement dynamics.
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Course 1: IAMs in Dynare
Objectives of the Lecture:
- Understand the structure and purpose of Integrated Assessment Models
- Formulate and solve dynamic macroeconomic models in Dynare
- Apply stochastic and deterministic solution techniques
- Analyze climate–economy interactions at business-cycle and long-run horizons
Materials:
Course 2: Methodology on Short and Long Term Dynamics (incomplete)
Objectives of the Lecture:
- Understand how exogenous climate and socioeconomic trends shape long-run dynamics in IAMs
- Construct and simulate a decentralized Baby IAM with optimizing households and firms
- Compare deterministic and stochastic transition paths under alternative climate policies
- Quantify the macroeconomic impacts of damages, abatement costs, and carbon taxation
Materials:
