Auerswald, Heike; Konrad, Kai A.; Thum, Marcel - CESifo - 2011
widely unknown. Governments try to cope with these risks by investing in mitigation and adaptation measures. Mitigation aims … to the existing literature, we explicitly model the decision of risk-averse governments on mitigation and adaptation … policies. Furthermore we also consider the interaction of the two strategies. Mitigation efforts of a single country trigger …