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The possibility of low-probability extreme events has reignited the debate over the optimal intensity and timing of climate policy. In this paper we therefore contribute to the literature by assessing the implications of low-probability extreme events on environmental policy in a continuous-time...
Persistent link: https://www.econbiz.de/10013139799
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
If the threshold that triggers climate catastrophe is known with certainty, and the benefits of avoiding catastrophe are high relative to the costs, treaties can easily coordinate countries’ behavior so as to avoid the threshold. Where the net benefits of avoiding catastrophe are lower,...
Persistent link: https://www.econbiz.de/10013315826
I offer a selective review of discounting and climate policy. Analytic and numerical models show that different assumptions greatly change the degree to which decisions about climate policy depend on the discount rate. I discuss a claim that standard models exaggerate the current generation’s...
Persistent link: https://www.econbiz.de/10013316325
second country, from which a steady stream of greenhouse gases occur. If this migration imposes costs on the emitting country …, then migration induces a sort of pseudo carbon tax.via political economic forces. This pseudo tax creates an incentive for …), is smaller in the presence of migration. I discuss various comparative dynamics, for both the path of production and the …
Persistent link: https://www.econbiz.de/10012978388
We analyse whether migration is an adaptation that households employ to cope with climate in Ghana and Nigeria. If … migration is part of the present adaptation portfolio of households in developing countries, it is reasonable to expect that it … conditions rather than in short-term weather fluctuations. The data to test these predictions are drawn from two different …
Persistent link: https://www.econbiz.de/10013026677
We examine environmental factors as potential determinants of international migration. We distinguish between … on a simple neo-classical model we use a panel dataset of bilateral migration flows for the period 1960-2000, the time … whole, we find little direct impact of climatic change on international migration in the medium to long run across our …
Persistent link: https://www.econbiz.de/10013109744
Does trade openness cause higher GDP per capita? Since the seminal instrumental variables (IV) estimates of Frankel and Romer [F&R](1999) important doubts have surfaced. Is the correlation spurious and driven by omitted geographical and institutional variables? In this paper, we generalize F&R's...
Persistent link: https://www.econbiz.de/10013121825
The literature on estimating macroeconomic effects of fiscal policy requires suitable instruments to identify exogenous and unanticipated spending shocks. So far, the instrument of choice has been military build-ups. This instrument, however, largely limits the analysis to the US as few other...
Persistent link: https://www.econbiz.de/10013097432
We investigate the macroeconomic effects of government spending shocks in Korea. We compare results obtained with two alternative approaches: the narrative approach and Structural Vector-Autoregressive model (SVAR). We propose a new methodology for identifying exogenous and unexpected fiscal...
Persistent link: https://www.econbiz.de/10013100013