Dataset Information

Declining CO₂ price paths.

ABSTRACT: Pricing greenhouse-gas (GHG) emissions involves making trade-offs between consumption today and unknown damages in the (distant) future. While decision making under risk and uncertainty is the forte of financial economics, important insights from pricing financial assets do not typically inform standard climate-economy models. Here, we introduce EZ-Climate, a simple recursive dynamic asset pricing model that allows for a calibration of the carbon dioxide ([Formula: see text]) price path based on probabilistic assumptions around climate damages. Atmospheric [Formula: see text] is the "asset" with a negative expected return. The economic model focuses on society's willingness to substitute consumption across time and across uncertain states of nature, enabled by an Epstein-Zin (EZ) specification that delinks preferences over risk from intertemporal substitution. In contrast to most modeled [Formula: see text] price paths, EZ-Climate suggests a high price today that is expected to decline over time as the "insurance" value of mitigation declines and technological change makes emissions cuts cheaper. Second, higher risk aversion increases both the [Formula: see text] price and the risk premium relative to expected damages. Lastly, our model suggests large costs associated with delays in pricing [Formula: see text] emissions. In our base case, delaying implementation by 1 y leads to annual consumption losses of over 2%, a cost that roughly increases with the square of time per additional year of delay. The model also makes clear how sensitive results are to key inputs.

SUBMITTER: Daniel KD

PROVIDER: S-EPMC6800385 | biostudies-literature | 2019 Oct

REPOSITORIES: biostudies-literature

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Declining CO<sub>2</sub> price paths.

Daniel Kent D KD Litterman Robert B RB Wagner Gernot G

Proceedings of the National Academy of Sciences of the United States of America 20191001 42

Pricing greenhouse-gas (GHG) emissions involves making trade-offs between consumption today and unknown damages in the (distant) future. While decision making under risk and uncertainty is the forte of financial economics, important insights from pricing financial assets do not typically inform standard climate-economy models. Here, we introduce EZ-Climate, a simple recursive dynamic asset pricing model that allows for a calibration of the carbon dioxide ([Formula: see text]) price path based on ...[more]

PMID: 31575747

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Project description:Pathway analysis methodologies couple traditional gene expression analysis with knowledge encoded in established molecular pathway networks, offering a promising approach towards the biological interpretation of phenotype differentiating genes. Early pathway analysis methodologies, named as gene set analysis (GSA), view pathways just as plain lists of genes without taking into account either the underlying pathway network topology or the involved gene regulatory relations. These approaches, even if they achieve computational efficiency and simplicity, consider pathways that involve the same genes as equivalent in terms of their gene enrichment characteristics. Most recent pathway analysis approaches take into account the underlying gene regulatory relations by examining their consistency with gene expression profiles and computing a score for each profile. Even with this approach, assessing and scoring single-relations limits the ability to reveal key gene regulation mechanisms hidden in longer pathway sub-paths. We introduce MinePath, a pathway analysis methodology that addresses and overcomes the aforementioned problems. MinePath facilitates the decomposition of pathways into their constituent sub-paths. Decomposition leads to the transformation of single-relations to complex regulation sub-paths. Regulation sub-paths are then matched with gene expression sample profiles in order to evaluate their functional status and to assess phenotype differential power. Assessment of differential power supports the identification of the most discriminant profiles. In addition, MinePath assess the significance of the pathways as a whole, ranking them by their p-values. Comparison results with state-of-the-art pathway analysis systems are indicative for the soundness and reliability of the MinePath approach. In contrast with many pathway analysis tools, MinePath is a web-based system (www.minepath.org) offering dynamic and rich pathway visualization functionality, with the unique characteristic to color regulatory relations between genes and reveal their phenotype inclination. This unique characteristic makes MinePath a valuable tool for in silico molecular biology experimentation as it serves the biomedical researchers' exploratory needs to reveal and interpret the regulatory mechanisms that underlie and putatively govern the expression of target phenotypes.

Dataset Information

Declining CO₂ price paths.

Publications

Declining CO<sub>2</sub> price paths.

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Dataset Information

Declining CO2 price paths.

Publications

Declining CO<sub>2</sub> price paths.

Shared Molecules

Only show the datasets with similarity scores above: 0.5

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OmicsDI is part of the ELIXIR infrastructure

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Declining CO₂ price paths.