Research topic C-1 tackles the potential benefit future information about the climate system may have for crucial actors in the climate policy arena such as enterprises and clusters of nation states. For nations, increased information about the unfolding of climate dynamics would change the course of investment in adaptation and mitigation technologies as well as the willingness to join in various versions of bi-, multi- or global climate agreements. The thereby generated regulation in turn influences enterprises’ decisions as directly does climate information.
In C-1, we analyze the actors’ responses to various information and regulation scenarios as well as the interaction between interest groups and regulators concerning climate policies.
We develop stylized hedging strategies anticipating future learning about the climate system and mitigation and adaptation technologies. We employ conceptual as well as more comprehensive calibrated models, the latter in particular for the energy and land use sector. Partial soft-coupling across the model hierarchy will allow deriving crucial options for society on how to tackle the climate problem in an economically efficient and institutionally long-term stable manner. Econometric studies as well as multi-agent lab experiments and various empirical analyses of investment strategies will feed into this model hierarchy to set new quality standards for the calibration and validation of decentral socioeconomic projections. The topic contains four different sub projects.