Research in the Economic Frontiers program within both research groups concerns the impacts of climate change and the consequent transition processes. While the EELC research group focuses on the varying impacts on the heterogeneous population, the EDC group concentrates on the disruptive and general economic aspects of climate change.
Optimal taxation of polluting emissions
The control of polluting emissions is an perpetual question in the literature of environmental economics. Different economic settings require different tools and strategies to efficiently keep pollution under control. Stefan Wrzaczek together with international colleagues analyses these strategies within two different settings: (i) Management of the tragedy of commons and polluting emissions through taxation in different market settings. (ii) Pollution control under catastrophic climate change as a differential game.
Carbon dioxide removal (CDR) technologies
Deep decarbonization of energy systems is a key step to restrict the global temperature rise to “well below 2 °C”. Majority of global net-zero emission scenarios emphasize on the large-scale deployment of Carbon dioxide removal (CDR) technologies like bioenergy with carbon capture and storage (BECCS) to meet the global climate goals.
Modelling household behaviour in the face of disaster risk
Their have been numerous empirical studies on the specific household characteristics correlated with the different components of disaster risk, i.e. exposure and vulnerability. In cooperation with colleagues from POPJUS and the TU Wien, Michael Freiberger establishes a dynamic household model, which explains the behavior with respect to the risk of natural disasters based on their inherent preferences. This theoretical model is essential for the realistic assessment of policy interventions, as it allows for a projection of intrinsically motivated reactions of households to potential policy interventions.
Investigating IAMs from an analytical perspective
Integrated Assessment Models (IAMs) attempt to capture and describe the interactions of (i) human behaviour, (ii) economic activity, and (iii) and climate dynamics and impacts. However, IAMs are often treated as some sort of black-box when calculating solutions. Researchers of the Economic Frontiers Program try to investigate established IAMs from an analytical perspective and generate new insight and illuminate the black-boxes.