AI4GCC - Team: Below Sea Level: Critiques and Improvements

TL;DR

This paper critically analyzes the RICE-N climate-economy model, identifying key issues and proposing improvements to enhance its policy relevance and realism in simulating climate change impacts.

Contribution

It offers a detailed critique of RICE-N, highlights common IAM limitations, and suggests specific modifications to improve model accuracy and policy guidance.

Findings

Identified action masking and irrelevant actions in RICE-N

Proposed use of tariff revenue and penalization of overproduction

Highlighted overly optimistic damage and unrealistic abatement functions

Abstract

We present a critical analysis of the simulation framework RICE-N, an integrated assessment model (IAM) for evaluating the impacts of climate change on the economy. We identify key issues with RICE-N, including action masking and irrelevant actions, and suggest improvements such as utilizing tariff revenue and penalizing overproduction. We also critically engage with features of IAMs in general, namely overly optimistic damage functions and unrealistic abatement cost functions. Our findings contribute to the ongoing efforts to further develop the RICE-N framework in an effort to improve the simulation, making it more useful as an inspiration for policymakers.