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Global Warming and Extreme Events : Rethinking the Timing and Intensity of Environmental Policy
Chen, Yu-Fu - 2010
-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results … indicate the importance of tail risk and call for foresighted pre-emptive climate policies …
Persistent link: https://www.econbiz.de/10013139799
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The Impact of Uncertainty on the European Energy Market : A Scenario Aggregation Approach
Brekke, Kjell Arne - 2013
We present a simple approach to transform a deterministic numerical model, where several agents simultaneously make decisions, into a stochastic model. This approach, which builds on scenario aggregation, a numerical method developed to solve decision problems under uncertainty, is used to build...
Persistent link: https://www.econbiz.de/10013072087
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On Welfare Frameworks and Catastrophic Climate Risks
Millner, Antony - 2021
Recent theoretical work in the economics of climate change has suggested that climate policy is highly sensitive to ‘fat-tailed’ risks of catastrophic outcomes (Weitzman, 2009b). Such risks are suggested to be an inevitable consequence of scientific uncertainty about the effects of increased...
Persistent link: https://www.econbiz.de/10013315705
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Fair Intergenerational Utilitarianism : Risk, its Resolution Over Time, and Discounting
Piacquadio, Paolo G. - 2015
The paper reexamines the welfare economics of intergenerational risk. Risk and its resolution over time are modeled as … preferences to (i) disentangle aversion to intergenerational inequality from aversion to risk, (ii) exhibit a preference for early … resolution of risk, (iii) show different discounting formulas depending on the magnitude of risk and on the timing of its …
Persistent link: https://www.econbiz.de/10013030316
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Why Uncertainty Matters - Discounting Under Intertemporal Risk Aversion and Ambiguity
Traeger, Christian P. - 2012
assumption of (intertemporal) risk neutrality reduces the growth effect in social discounting and significantly amplifies the … importance of risk and correlation. Second, debate and models largely overlook the difference in attitude with respect to risk … and with respect to non-risk uncertainty. The paper derives the resulting changes of the risk-free and the stochastic …
Persistent link: https://www.econbiz.de/10013110758
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Faustmann and the Climate
Hoel, Michael; Holtsmark, Bjart; Holtsmark, Katinka Kristine - 2021
harvesting even if the commercial profit from harvest is negative. If that is the case, the optimal harvest age is decreasing in …
Persistent link: https://www.econbiz.de/10013315853
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Faustmann and the Climate
Hoel, Michael; Holtsmark, Bjart; Holtsmark, Katinka - CESifo - 2012
harvesting even if the commercial profit from harvest is negative. If that is the case, the optimal harvest age is decreasing in …
Persistent link: https://www.econbiz.de/10010877686
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Private Capital, Public Goods : Forest Plantations' Investment in Local Infrastructure and Social Services in Rural Tanzania
Degnet, Mohammed B. - 2017
With the rapid expansion of private forest plantations worldwide, their impacts on local development are under scrutiny by NGOs and researchers alike. This study investigates the impacts of private forest plantations on local infrastructure and social services in rural Tanzania. We take a...
Persistent link: https://www.econbiz.de/10012943387
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Once Upon a Time Preference - How Rationality and Risk Aversion Change the Rationale for Discounting
Traeger, Christian P. - 2012
a richer risk attitude than that captured in the standard discounted expected utility model. I derive three models that … permit a more comprehensive risk evaluation. These preference representations differ regarding the consistency requirements …
Persistent link: https://www.econbiz.de/10013107349
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Dark Clouds or Silver Linings? Knightian Uncertainty and Climate Change
Chen, Yu-Fu - 2013
This paper examines the impact of Knightian uncertainty upon optimal climate policy through the prism of a continuous-time real option modelling framework. We analytically determine optimal intertemporal climate policies under ambiguity. Additionally, numerical simulations are provided to...
Persistent link: https://www.econbiz.de/10013092649