Publication

Degradation of ecosystem services may be a major component of climate change damage, and incorporation of this factor could significantly alter the significance of uncertainty in climate-economy modeling. We apply standardized numerical techniques of stochastic optimization to this research question. The model results show that the effects of uncertainty are different with different levels of agent’s risk aversion. In other words, mitigation could both increase and decrease with climatic uncertainty. The model would provide hints for policy-making in finding a balance between economic growth, climate protection, and the conservation of ecosystems