Date: Wed. 25th September at 2PM
Abstract: The Dynamic Integrated Climate-Economy model, referred to as the DICE model, is a neoclassical integrated assessment model developed by 2018 Nobel Laureate William Nordhaus. The model integrates in the neoclassical economics, carbon cycle, climate science, and estimated impacts allowing the weighing of subjectively guessed costs and subjectively guessed benefits of taking steps to slow climate change. My research is moving from DICE MODEL to SDICE MODEL. In other words, by adding probability to the DICE MODEL that is being considered in discrete time, it becomes an SDICE MODEL that can be considered in continuous time. Specifically, we use Hamiltonian stochastic differential equations to calculate the DICE MODEL from the Ito formula. Joint work with Jiro Akahori.