EZ-Climate is a model for pricing carbon dioxide emission. It explores the implications of these richer preference specifications for the optimal price. We develop the EZ-Climate model, a simple discrete-time model in which the representative agent has an Epstein-Zin preference specification, and in which uncertainty about the effect of
emissions on global temperature and on eventual damages is gradually resolved over time. In the EZ-Climate model the optimal price is equal to the price of one ton of
emitted at any given point in time that maximizes the utility of the representative agent at that time. We embed a number of features including tail risk, the potential for technological change, and backstop technologies. In contrast to most modeled carbon price paths, the EZ-Climate model suggests a high optimal carbon price today that is expected to decline over time. It also points to the importance of backstop technologies and to potentially very large.
You can find the most recent releases at: https://pypi.python.org/pypi/ez_climate/.
See the EZ-Climate User's Guide for EZ-Climate documentation.
In order to get the tip documentation, change directory to the doc subfolder and type in make html, the documentation will be under ../../ez_climate_docs/html. You will need Sphinx to build the documentation.
We encourage you to use pip to install EZ-Climate on your system.
pip install ez_climateIf you wish to build from sources, download or clone the repository.
python setup.py installEZ-Climate is compatible with Python 2 and 3. Numpy is required, and we recommend matplotlib for visualization of results.
- Robert Litterman
- Kent Daniel
- Gernot Wagner