International climate negotiations take place in a setting where uncertainties regarding the impacts of climate change are very large. In this paper, we examine the influence of increasing the probability and impact of large climate change damages, also known as the 'fat tail', on the formation...

Anfang Dezember, bei dem Weltklimagipfel in Kopenhagen, wird das Startsignal zu einer wichtigen Verhandlungsrunde im Kampf gegen den Klimawandel gegeben. Doch die Chancen, in Kopenhagen ein neues Klimaprotokoll und somit einen erfolgreichen Ausgang zu erzielen, sind in den vergangenen Monaten...

The social cost of carbon is the central economic measure for aggregate climate change damages and functions as a metric for optimal carbon prices. Previous literature shows that inequality significantly influences the level of the social cost of carbon, but mostly neglects a major source of...