A Multi-Modal Analysis of Climate-Economics

Abstract

We investigate the qualitative properties of the climate-economic growth model introduced by Brock et al., (2012). We assume that the mean annual distribution of solar radiation energy and the fraction of incoming radiation flux absorbed by the surface have a specific form, and perform a rigorous mathematical analysis when the time scale for temperature is taken to be faster than that of carbon. We analyze the impact of moving welfare weights away from Negishi weights by introducing a simple welfare weights function. We perform a qualitative analysis on the output elasticities of carbon and capital, and examine the way thermal diffusion affects local economic variables and taxes at the equilibrium. We then evaluate the robustness of the two- and four-mode forms in the context of the temperature model.