Document Type

Discussion Paper

Publication Date

2-25-2023

CFDP Number

2363

CFDP Pages

43

Journal of Economic Literature (JEL) Code(s)

Q5, C6, H4

Abstract

The present study examines the assumptions, modeling structure, and preliminary results of DICE-2023, the revised Dynamic Integrated Model of Climate and the Economy (DICE), updated to 2023. The revision contains major changes in the carbon and climate modules, the treatment of non-industrial greenhouse gases, discount rates, as well as updates on all the major components. The major changes are a significant reduction in the target for the optimal (cost-beneficial) temperature path, a lower cost of reaching the 2 °C target, an analysis of the impact of the Paris Accord, and a major increase in the estimated social cost of carbon.

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Economics Commons

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