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Uncertainty in Integrated Assessment Models of Climate Change:  Alternative Analytical Approaches / Alexander Golub, Daiju Narita,  Matthias G.W. Schmidt. FEEM, 2011, 24 p. (Nota di lavoro 2011.002)http://www.feem.it/userfiles/attach/2011117101474NDL2011-002.pdfUncertainty plays a key role in the economics of climate change, and the  discussions surrounding its implications for climate policy are far from  settled. We give an overview of the literature on uncertainty in  integrated assessment models of climate change and identify some future  research needs. In the paper, we pay particular attention to three  different and complementary approaches that model uncertainty in  association with integrated assessment models: the discrete uncertainty  modeling, the most common way to incorporate uncertainty in complex  climate-economy models: the real options analysis, a simplified way to  identify and value flexibility: the continuous-time stochastic dynamic  programming, which is computationally most challenging but necessary if  persistent stochasticity is considered. (© FEEM)