Fig. 2: Schematic representation of the iterative procedure.
From: Investment incentive reduced by climate damages can be restored by optimal policy
The estimated change in the annual growth rate due to temperature increase9 (a) is disentangled into (b) the respective temperature-sensitive productivity function and into (c) its associated optimal investment response in the business-as-usual scenario, which is characterised by inaction of climate policy. d The iterated growth rate converges towards the estimated growth rate after ~200 iterations. Source data are provided as a Source Data file.
