Prof. Lontzek to have Article Published in the Journal of Econometrics
The paper "Statistical Approximation of High-Dimensional Climate Models" has been accepted for publication by the Journal of Econometrics. The authors are Prof. Thomas S. Lontzek (RWTH Chair of Computational Economics), Alena Miftakhova (University of Zurich), Karl Schmedders (University of Zurich) and Kenneth L. Judd (Stanford University).
Abstract: We propose a general emulation method for constructing low-dimensional approximations of complex dynamic climate models. Our method uses artificially designed uncorrelated CO2 emissions scenarios, which are much better suited for the construction of an emulator than are conventional emissions scenarios. We apply our method to the climate model MAGICC to approximate the impact of emissions on global temperature. Comparing the temperature forecasts of MAGICC and our emulator, we show that the average relative out-of-sample forecast errors in the low-dimensional emulation models are below 2 percent. Our emulator offers an avenue to merge modern macroeconomic models with complex dynamic climate models.