Title :
A real option approach considering the climate change for policy decision
Author :
Koide, N. ; Tsuda, H. ; Okuhara, K. ; Tsubaki, H.
Author_Institution :
Grad. Sch. of Inf. Sci. & Technol., Osaka Univ., Suita, Japan
Abstract :
In the DICE model, it simulates climate changes from macro-economic dynamics. In this paper, we assume that the temperature changes may be altered by economic or political factors, and some stochastic process provides it. Under uncertainty, we present the new approach to obtain an optimal policy on utility function based on DICE using real option approach considering the option graph.
Keywords :
decision making; environmental economics; graph theory; macroeconomics; politics; stochastic processes; utility theory; DICE model; climate change; economic factors; macroeconomic dynamics; optimal policy; option graph; policy decision; political factors; real option approach; stochastic process; temperature changes; uncertainty; utility function; Economics; Equations; Mathematical model; Meteorology; Oceans; Stochastic processes; Uncertainty; Climate Change; Economy; Real Option Approach;
Conference_Titel :
Green and Ubiquitous Technology (GUT), 2012 International Conference on
Conference_Location :
Jakarta
Print_ISBN :
978-1-4577-2172-4
DOI :
10.1109/GUT.2012.6344181
