@article{34,
  keywords = {climate policy, solar geoengineering},
  author = {Garth Heutel and Juan Moreno-Cruz and Soheil Shayegh},
  title = {Solar geoengineering, uncertainty, and the price of carbon},
  abstract = {<p>We study optimal climate policy when climate tipping points and solar geoengineering are present.<br />
Solar geoengineering reduces temperatures without reducing greenhouse gas emissions. Climate tipping<br />
points are irreversible and uncertain events that cause large damages. We analyze three different rules<br />
related to the availability of solar geoengineering: a ban, using solar geoengineering as insurance against<br />
the risk of tipping points, or using solar geoengineering only as remediation in the aftermath of a tipping<br />
point. We model three distinct types of tipping points: two that alter the climate system and one that<br />
yields a direct economic cost. Using an analytic model, we find that an optimal policy, which minimizes<br />
expected losses from the tipping point, includes both emissions reductions and solar geoengineering<br />
from the onset. Using a numerical simulation model, we quantify optimal policy and various outcomes<br />
under the alternative scenarios. The presence of tipping points leads to more mitigation and more solar<br />
geoengineering use and lower temperatures.</p>
},
  year = {2018},
  journal = {Journal of Environmental Economics and Management},
  volume = {87},
  doi = {https://doi.org/10.1016/j.jeem.2017.11.002},
}