Showing 1 - 10 of 70
Two agents are engaged in a joint activity that yields a common perperiod payoff at two rounds of play. The expert announces the probability that the current state of the world is low, instead of high, at each stage. Having received the report of the expert, the decision-maker takes action at...
Persistent link: https://www.econbiz.de/10008828403
evaluates the role of Solar Radiation Management (SRM) on the optimal abatement path, focusing on the uncertainty about the … theory under uncertainty, we show that abatement is decreasing in the probability of success of SRM, but that this relation …
Persistent link: https://www.econbiz.de/10010904907
Given disparate beliefs about economic growth, technical change and damage caused by climate change, this paper starts with the seeming impossibility of determining a unique time profile of the social costs of carbon as a benchmark for climate negotiations and for infrastructure decisions that...
Persistent link: https://www.econbiz.de/10010904931
Uncertainty is prevalent in the context of climate change impacts. Moreover, the distribution across the globe is not …
Persistent link: https://www.econbiz.de/10010941054
This paper studies the empirical relationship between consumption and saving under two different sources of uncertainty …
Persistent link: https://www.econbiz.de/10009320989
In this paper a real option model is developed to examine the critical factors affecting the decision to lease agricultural land to a company installing a PV power plant. The leasing payment is certain while the net revenues from agriculture are uncertain. We identify the profit values at which...
Persistent link: https://www.econbiz.de/10009421231
Na and Shin (1998) showed that the veil of uncertainty can be conducive to the success of self-enforcing international … research efforts worldwide to reduce uncertainty about the environmental impact of emissions and the cost of reducing them … but also partial learning. Second, we test whether the conclusion also holds if there is uncertainty about abatement costs …
Persistent link: https://www.econbiz.de/10008465547
There is a tendency among policy-makers and industry lobbyists toward "specific", "relative" or "output-based" quotas, i.e., freely distributed to firms proportionally to their output. With a stochastic analytical model, we demonstrate that relative quotas are dominated either by absolute quotas...
Persistent link: https://www.econbiz.de/10005423153
Uncertainty 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 … complementary approaches that model uncertainty in association with integrated assessment models: the discrete uncertainty modeling …
Persistent link: https://www.econbiz.de/10008828410
We consider an optimal consumption and pollution problem that has two important features. Environmental damages due to economic activities may be irreversible and the level at which the degradation becomes irreversible is unknown. Particular attention is paid to the situation where agents are...
Persistent link: https://www.econbiz.de/10008853075