Fig. 1: Schematic representation of the model.
From: On the optimality of 2°C targets and a decomposition of uncertainty
The model consists of an economic module (top) with a Cobb-Douglas production function, and an emission module (bottom). The interactions between these two modules occur through damages and mitigation costs. The coloured boxes represent the parameters for which we use a representative range from literature. The carbon price path, in black, is the input variable of the model and the control variable in the optimisation.
