The paper clarifies the link between changes in risk aversion and the effect on the consumption discount rate. In a … rate to a change in risk aversion depends on some fundamental properties of the considered uncertainties. The application … of this general result to specific forms of uncertainty extends existing results to more general forms of risk and yields …

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 …

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 …