Optimal carbon pricing in general equilibrium: Temperature caps and stranded assets in an extended annual DSGE model
扩展了Golosov等人（2014）的一般均衡模型，引入全球变暖对效用和生产率增长的额外负面影响，推导出最优碳定价规则，并分析温度上限对搁浅油气储备的影响。
The general equilibrium model developed by Golosov et al. (2014), GHKT for short, is modified to allow for additional negative impacts of global warming on utility and productivity growth, mean reversion in the ratio of climate damages to production, labour-augmenting technical progress, and population growth. We also replace the GHKT assumption of full depreciation of capital each decade by annual logarithmic depreciation. Furthermore, we allow the government to use a lower discount rate than the private sector. We derive a tractable rule for the optimal carbon price for each of these extensions. We then simplify the GHKT model by making temperature a linear function of cumulative emissions and making the proportion of output lost due to global warming a linear function of temperature. Finally, we consider how the rule for the optimal carbon price must be modified to allow for a temperature cap, and what this implies for stranded oil and gas reserves. We illustrate our analytical results with a range of optimal policy simulations.