Economic models and climate policy

Researchers report that the economic growth model used in a prominent benefit-cost integrated assessment model (BC-IAM), which couples climate models with global economy models to estimate the costs and benefits of different climate policies, did not accurately predict the US economy from 1870-2010 in a retrospective analysis, and suggest that policy analyses that rely on BC-IAMs could be improved by subjecting their economic components to rigorous testing. - Read at PNAS.org

Article #16-04121: “Model confirmation in climate economics,” by Antony Millner and Thomas K.J. McDermott.