Climate feedback mechanisms that have the potential to intensify global
warming have been omitted almost completely in the integrated assessment of
climate change and the economy so far. In the present paper, we incorporate the
permafrost carbon feedback (PCF) into the well-known integrated assessment model
DICE-2013R. We calibrate the parameters for our extended version of DICE-2013R
and compute the optimal emission mitigation rates that maximize welfare. Our
results indicate that accounting for the PCF leads to an increase in mitigation.
Finally, we quantify the economic losses resulting from a climate policy which
ignores the impacts of the PCF

• The permafrost carbon feedback in DICE-2013R modeling and empirical results