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Publicado en: Documento de trabajo

Tipping Points and Business-as-Usual in a Global Carbon Commons

Rodrigo Harrison and Roger Laguno

Documento de Trabajo IE-PUC, N° 458, 2015.

Abstract: This paper formulates a dynamic model of global carbon consumption in the absence of an effective international agreement. Each period, countries extract carbon from the global ecosystem. A country’s output depends both on its carbon usage and on the ecosystem (“stored carbon”). The desired mix of extracted versus stored carbon by each country is determined by its stochastically evolving factor elasticities.


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