Replication archive for "Incorporating an Investment Multiplier into DICE Supports More Rapid Decarbonization"

All calculations for this paper were performed in the Excel spreadsheet archived here, which is a modified version of William Nordhaus' "©DICE2023-Excel-beta-1-1" spreadsheet. This archive is licensed under CC-BY-NC-4.0. Users should note that the tabs derived from Nordhaus' original work are subject to his copyright; he requests that any use be cited as: William Nordhaus, "©DICE2023-Excel-beta-1-1," and that commercial use requires his permission.

We retain Nordhaus' tabs: "Version Notes", "Parameters", "Base", "Opt", "LimT2", and "GAMS". The remaining tabs are ours. The tabs "Opt 0.25", "Opt 0.5", "Opt 0.75", and "Opt 0.9" calculate the optimal climate policy if the investment multiplier described in our paper is 0.25, 0.5, 0.75, or 0.9, and those outputs are illustrated in Figures 1 and 2. The tabs "DICE opt 0.25", "DICE opt 0.5", "DICE opt 0.75", and "DICE opt 0.9" recalculate output and consumption following DICE's optimal policy under each of these multipliers, and those outputs are illustrated in Figure 3.

To make our results as comparable as possible to "©DICE2023-Excel-beta-1-1", we retain its figures, formulas, frozen panels, and highlighting. Our additions are highlighted red. In the tabs "Opt 0.25", "Opt 0.5", "Opt 0.75", "Opt 0.9", "DICE opt 0.25", "DICE opt 0.5", "DICE opt 0.75", and "DICE opt 0.9" we add "Output with investment multiplier" and "Gross output after damages before abatement" to rows 52 and 55, and update formula references to match Equations (1) through (6) in our paper. In the tabs "Opt 0.25", "Opt 0.5", "Opt 0.75", and "Opt 0.9" we reoptimize the "Savings rate" in row 74 and the "Emissions Control Rate" in row 78, while retaining Nordhaus' optimal values in the "DICE opt" tabs. Our tab "Graphs" shows how each published figure is constructed using output organized in the "Graph inputs" tab.