Showing 1 - 10 of 411
derives max-min, max-max and min-max regret policies to deal with this particular form of climate (model) uncertainty and with …
Persistent link: https://www.econbiz.de/10012947620
of IEA formation when countries are risk neutral and another that explores the implications of uncertainty and risk …This paper analyses the formation of international environmental agreements (IEAs) under uncertainty, focusing on the … role of learning and risk aversion. It bridges two strands of literature: one focused on the role learning for the success …
Persistent link: https://www.econbiz.de/10013059058
unaffected by uncertainty about the impact of crossing the threshold but that collective action collapses if the location of the … uncertainty. Inside the dividing line, where uncertainty is small, collective action should succeed. Outside the dividing line …, where uncertainty is large, collective action should fail. We test this prediction in the experimental lab. Our results …
Persistent link: https://www.econbiz.de/10013315630
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...
Persistent link: https://www.econbiz.de/10013315816
, sustaining only modest cuts in emissions. These results are unaffected by uncertainty about the impact of catastrophe. By … contrast, uncertainty about the catastrophic threshold typically causes coordination to collapse. Whether the probability …
Persistent link: https://www.econbiz.de/10013315826
This paper assesses the role of the public sector in adaptation to climate change. We first offer a definition and categorisation of climate change adaptation. We then consider the primary economic principles that can guide the assignment of adaptation tasks to either the private or the public...
Persistent link: https://www.econbiz.de/10013099237
Climate physics predicts that the intensity of natural disasters will increase in the future due to climate change. We present a stochastic model of a growing economy where natural disasters are multiple and random, with damages driven by the economy's polluting activity. We provide a...
Persistent link: https://www.econbiz.de/10013040491
We investigate how irreversibility in “dirty” and “clean” capital stocks affects optimal climate policy, from both theoretical and numerical perspectives. An increasing carbon tax will reduce investments in assets that pollute, and so reduce emissions in the short term: our...
Persistent link: https://www.econbiz.de/10012922656
We investigate how irreversibility in "dirty" and "clean" capital stocks affects optimal climate policy, from both theoretical and numerical perspectives. An increasing carbon tax will reduce investments in assets that pollute, and so reduce emissions in the short term: our "irreversibility...
Persistent link: https://www.econbiz.de/10012928938
In this paper, we acknowledge that the mitigation of and adaptation to climate change have differential fiscal impacts. Whereas mitigation typically raises fiscal revenues, adaptation is costly to the taxpayer and to a greater extent the more distortionary the tax system is. In an OLG model with...
Persistent link: https://www.econbiz.de/10012997332