EZ-Climate is a model for pricing carbon dioxide (CO2) emission. It explores the implications of these richer preference specifications for CO2 price paths. We develop the EZ-Climate model, a simple discrete-time model in which the representative agent has an Epstein-Zin preference specification, and in which uncertainty about the effect of CO2 emissions on global temperature and on eventual damages is gradually resolved over time. In the EZ-Climate model the CO2 price is equal to the price of one ton of CO2 emitted at any given point in time that maximizes the utility of the representative agent at that time. We embed a number of features including tail risk, the potential for technological change, and backstop technologies. In contrast to most modeled carbon price paths, the EZ-Climate model suggests a high optimal carbon price today that is expected to decline over time. It also points to the importance of backstop technologies and to potentially very large.
You can find the most recent releases at: https://pypi.python.org/pypi/ezclimate/.
See Declining CO2 price paths (PNAS, 1 October 2019) for our joint PNAS paper employing this code.
We encourage you to use pip to install ezclimate on your system.
pip install ezclimateIf you wish to build from sources, download or clone the repository.
python setup.py installEZ-Climate is compatible with Python 2 and 3. Numpy is required, and we recommend matplotlib for visualization of results.