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price, the equilibrium risk-free rate, and risk premia. Climate disasters, which are more likely to occur sooner as … temperature rises, significantly increase risk premia. …
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Temperature responses and optimal climate policies depend crucially on the choice of a particular climate model. To illustrate, the temperature responses to given emission reduction paths implied by the climate modules of the well-known integrated assessments models DICE, FUND and PAGE are...
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the risk-adjusted interest rate. Adding damages leads to a higher carbon price that grows more slowly. But as temperature …
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price rises at the risk-adjusted interest rate. Adding damages leads to a higher carbon price that grows more slowly. But as …
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intergenerational inequality aversion and for risk aversion. If growth increases (reduces) intra-generational inequality, the SDR is …
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or 1.5oC. The safe carbon budget is lower if uncertainty about the transient climate response is high and risk tolerance …
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