background or insured risks. (ii) Full risk coverage by the welfare state can only be optimal in a costless welfare state. (iii …

-insurance will be. (ii) Full risk coverage by the welfare state can only be optimal in a costless welfare state. (iii) The optimal …

-energy production at an uncertain world market price. Efficient risk management requires curbing fuel consumption, and hence carbon … emissions, when consumers are prudent. Moreover, if consumer preferences display constant absolute risk aversion (implying … prudence), an efficient response to increasing risk is promoting green energy and reducing total energy production. Unregulated …