Better Economic Models for Smarter Climate Policy

Decision-makers grappling with climate change must often rely on economic models, or math-based predictions of the effects a particular policy might have. Many of these models are outdated, yielding misleading results that can lead to useless or damaging policies. Renewed for a second year, this seed grant will allow researchers to continue improving the theoretical and empirical underpinnings of these models, plus spur their uptake by policymakers. The team will model the environmental costs of biofuels; optimize investments in the energy grid; and study how economic production affects the global water cycle.