Need Help with Question 4. link for DICE manual below:

http://www.econ.yale.edu/~nordhaus/homepage/homepage/documents/DICE_Manual_100413r1.pdf

4. (8 points) Create a marginal abatement cost function for carbon emissions using the DICE model. http://www.econ.yale.edu/"nordhaus/homepage/homepage/documents/DICE Manual 100413r1.pdf a. (2 points) In the GAMS code for the DICE model, find the equation for MCABATE(t) on page 100 of the user manual. This is the marginal cost of abatement in dollars per ton of CO2. In this equation, pbacktime(t) is the price of a carbon-neutral backstop technology (such as wind or solar power). MIU(t) is emission control rate, or the fraction of the carbon emissions which are "controlled." MIU(t) is a value between 0 (no emissions controlled), and 1 (all emissions controlled). The variable expcost2 is a parameter for the exponent. Write Dr. Norhaus' equation for marginal cost per ton, MC/t, as a function of the backstop price, p, the fraction of emissions controlled, u, and the exponent, x. (In other words, use the variable p for "pbacktime," u for MIU, and x for expcost2.) b. (2 points) In the DICE model, the price of the backstop technology declines over time. However, for simplicity, assume that the backstop price, p, remains constant at the initial price, which variable "pback" in this model. Find Dr. Nordhaus' assumptions for the values of pback and x on page 97 of the user manual. Report those values here. C. (2 points) Recall that the equation your reported in part 4.a is the marginal cost of controlling CO2. You can convert this to an equation for carbon by simply multiplying it times 3.67. Substitute the values for p and x that you reported in part 4.b into the equation you found in part 4.a and multiply times 3.67 to obtain a value for the marginal cost per ton of controlling carbon, Mc/t, as a function of the fraction of emissions controlled, u. d. (2 points) Assume that 50% of emissions are controlled (u=0.5). What is the marginal cost of controlling the last ton of emissions? 4. (8 points) Create a marginal abatement cost function for carbon emissions using the DICE model. http://www.econ.yale.edu/"nordhaus/homepage/homepage/documents/DICE Manual 100413r1.pdf a. (2 points) In the GAMS code for the DICE model, find the equation for MCABATE(t) on page 100 of the user manual. This is the marginal cost of abatement in dollars per ton of CO2. In this equation, pbacktime(t) is the price of a carbon-neutral backstop technology (such as wind or solar power). MIU(t) is emission control rate, or the fraction of the carbon emissions which are "controlled." MIU(t) is a value between 0 (no emissions controlled), and 1 (all emissions controlled). The variable expcost2 is a parameter for the exponent. Write Dr. Norhaus' equation for marginal cost per ton, MC/t, as a function of the backstop price, p, the fraction of emissions controlled, u, and the exponent, x. (In other words, use the variable p for "pbacktime," u for MIU, and x for expcost2.) b. (2 points) In the DICE model, the price of the backstop technology declines over time. However, for simplicity, assume that the backstop price, p, remains constant at the initial price, which variable "pback" in this model. Find Dr. Nordhaus' assumptions for the values of pback and x on page 97 of the user manual. Report those values here. C. (2 points) Recall that the equation your reported in part 4.a is the marginal cost of controlling CO2. You can convert this to an equation for carbon by simply multiplying it times 3.67. Substitute the values for p and x that you reported in part 4.b into the equation you found in part 4.a and multiply times 3.67 to obtain a value for the marginal cost per ton of controlling carbon, Mc/t, as a function of the fraction of emissions controlled, u. d. (2 points) Assume that 50% of emissions are controlled (u=0.5). What is the marginal cost of controlling the last ton of emissions