Economic incentives play a major role in determining future development pathways. Uncertainty pervades the management of natural resources and public goods, and the challenges of addressing climate change while ensuring food and energy security for a growing population. Moreover, uncertainty is frequently difficult to characterize.
In 2013 MEDU used a number of methodological tools, including stochastic optimization and simulation, dynamic and static portfolio selection, and real options theory. MEDU also undertook model inter-comparison exercises, particularly with respect to the integrated assessment of climate change impacts.
In addition, stylized economic modeling for understanding underlying dynamics and system effects and modeling of risk preferences were applied.
The Methods for Economic Decision making under Uncertainty (MEDU) group contributed to the first results of the Inter-Sectoral Impact Model Intercomparison Project (ISI-MIP), a pioneering collaboration within the international scientific community. More
This project in 2013 built on previous collaboration concerning real options modeling and applications to energy investments and the implementation of REDD (Reducing Emissions from Deforestation and forest Degradation). More
Research addressed the assessment of adaptation options to forest fires in Europe under projected climate change - a pioneering attempt to quantify impacts of reactive and preventive adaptation strategies within one modeling framework at a regional scale. More
Last edited: 22 May 2014
International Institute for Applied Systems Analysis (IIASA)
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