Climate Change Is Complex. AI Models Can Crack the Code.
The So What from BCG
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Redefining Economic Models for Climate Action
This chapter examines the limitations of traditional economic modeling in predicting climate change outcomes and introduces complexity economics as a solution. It showcases how advanced AI simulations can optimize policy design and decision-making, particularly regarding tax policies and international climate agreements. The discussion highlights the importance of equitable redistribution in climate strategies and the role of real-world data in informing effective governance.
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