Funding from AU IDEAS for new Climate Change Project

Professor Niels Haldrup, Department of Economics and Business, and Director of CREATES, has received DKK 500,000 DKK from AU IDEAS to the project "Econometric Analysis of Climate Change".

Niels Haldrup
Photo: Aarhus BSS Communication

The proposed research is motivated by the observation that the calculation of future sea-level changes and other implications of global warming scenarios is based on physical models that are unable to reproduce observed climate developments over the past decades. As a consequence, climatologists have started combining physical models with statistical models.

The purpose of the project is to intensify research within the field of climate change by use of advanced econometric time series methods and to start a methodological dialogue with researchers in climatology to improve forecasts and their precision.

Methods in time series econometrics to analyze trending time series data have been among the most rapidly developing fields in econometrics over the past 25 years and may potentially be useful in other disciplines where the focus is on statistical analysis of trending variables.

The research group includes Associate Professor Eric Hillebrand, and Professors Timo Teräsvirta and Søren Johansen from CREATES.