climate change. The risk of uncertain and potentially irreversible catastrophes is an important issue related to the latter … benchmark integrated assessment model. This study moves beyond recent catastrophe or tipping point studies with arbitrary risk … introduced here informs risk management strategies that balance uncertain future climate change impacts with the costs of …

Models (IAMs), which assumes no risk sharing across region, we introduce global risk sharing via a market for state … across regions. We estimate that such risk sharing scheme of climate risks could lead to welfare gains reducing the global … for considering risk sharing in IAMs, but also for potentially welfare increasing negotiations about sharing risks of …

composition of the optimal mix as both persuade the risk-averse social planner to invest more in mitigation. Overall, we identify …

, where capital accumulates through increased density of capital at risk in a given area, it is optimal for (i) the … probability of disaster occurrence to decrease with income; (ii) the capital at risk – and thus the economic losses in case of … development and slower than income at high levels of development. In that case, increasing risk-taking reinforces economic growth …

optimal policy balance in the context of catastrophic climate risk. The analysis uses the WITCH integrated assessment model … with a module that models the endogenous risk of experiencing an economic catastrophe if temperature increases above a … certain threshold. We find that the risk of a catastrophic outcome would encourage countries to reduce emissions even in the …