Joint-outcome prediction markets for climate risks.

ABSTRACT: Predicting future climate requires the integration of knowledge and expertise from a wide range of disciplines. Predictions must account for climate-change mitigation policies which may depend on climate predictions. This interdependency, or "circularity", means that climate predictions must be conditioned on emissions of greenhouse gases (GHGs). Long-range forecasts also suffer from information asymmetry because users cannot use track records to judge the skill of providers. The problems of aggregation, circularity, and information asymmetry can be addressed using prediction markets with joint-outcome spaces, allowing simultaneous forecasts of GHG concentrations and temperature. The viability of prediction markets with highly granular, joint-outcome spaces was tested with markets for mont

SUBMITTER: Roulston MS 

PROVIDER: S-EPMC11364416 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature