Appendix to “R&D Subsidies and Climate Policy: Is there a ‘Free Lunch’”: Equations and Calibration of the ENTICE-BR Model

This appendix provides further details of the ENTICE-BR model. Section A provides a complete list of equations in the model. Section B discusses calibration of both the base ENTICE model and the ENTICE-BR model, which includes R&D on a backstop technology. Interested readers can learn more about these models in Popp (forthcoming, 2004). A. Equations of the ENTICE-BR Model: Exogenous variables and parameters t = time Lt = population at time t, also equal to labor inputs L0 = initial population level gL,t = growth rate of population gL,0 = initial value of the growth rate of population dL = rate of decline of gL,t Dt = pure time preference discount factor r0 = initial value of the pure rate of social time preference gr = growth rate of the social time preferenc