Pricing Uncertainty Induced by Climate Change

This repository contains codes and jupyter notebooks which estimates and demonstrates results of the empirical model in "Pricing Uncertainty Induced by Climate Change" by Michael Barnett, William Brock and Lars Peter Hansen. Latest version could be found here.

Acessing our jupyter notebook

To access our notebook, please follow steps below:

1. Open a Windows command prompt or Mac command terminal and change into the folder you would like to store the files.
   • You can do this using the command cd in the command prompt.
   • For example, running "cd “C:\Users\username\python” " (don’t forget “” around the path name to use an absolute path) would lead me to my designated folder.

cd [folder path name]

2. Clone the github repository for the paper
   • If you don’t have github installed, try installing it from this page: https://git-scm.com/download/win.
   • You can do this by running in the command prompt.

git clone https://github.com/lphansen/Climate

3. To download the data you'll need, go to https://drive.google.com/drive/folders/1TVVqditjA489NNSD8H32u0e4eIJkoj0r?usp=sharing and copy the .pickle files into the subfolder data under the git repo Climate you just cloned.
4. Run install.bat for those who used windows or run install.sh for those who used Mac OS by double clicking the file.
5. Go back to command line prompt, change directories into the ‘Climate’ folder and open jupyter notebook by running below in command prompt
   • If you don’t have anaconda3 and jupyter notebook installed, try installing from this page: https://jupyter.org/install.html

cd Climate
jupyter notebook

6. We provide three notebooks:
   • "PaperResultsIllustration.ipynb" demonstrates interactive figures shown in the paper.
   • “ConsumptionModel.ipynb” demonstrates the computational details and codes on how we solve the model under consumption damage settings
   • “GrowthModel.ipynb” demonstrates growth damage settings. Click on the files to access them.
7. Run notebooks cell by cell or click "Run all" from "kernel" in the menu bar to see details about our model results and computational details.

Acessing our MATLAB codes

Please refers to the MATLAB folder