NSF Grant: Macroeconomics and Global Climate Change
Principal Investigator: Anthony A. Smith, Jr.
This project studies the macroeconomics of global climate change.
Its main purpose is to evaluate quantitatively how government
policies designed to reduce global warming affect the welfare of
different regions around the world. To this end, the project builds
a fully micro-founded model of the world economy which incorporates
realistic interactions between economic activity and global climate
and uses it to study climate-related policy. The model features: a
very large number of regions; significant region-specific detail
about the economic damages caused by changes in global climate;
uncertainty about climatic and meteorological disturbances; and rich
interactions between regions, including trade, insurance, and