The damage function in the famous climate-economy model DICE has received much criticism. Weitzman (2010) has proposed an alternative approach that gives more serious attention to climate change impacts for larger temperature increases. We calculate optimal climate policy with DICE using this...

We study the role of alternative intertemporal preference representations in a model of economic growth, stock pollutant and endogenous risk of catastrophic collapse. We contrast the traditional “discounted utility” model, which assumes risk neutrality with respect to intertemporal utility,...

We study the role of alternative intertemporal preference representations in a model of economic growth, stock pollutant and endogenous risk of catastrophic collapse. We contrast the traditional “discounted utility” model, which assumes risk neutrality with respect to intertemporal utility,...

We study the role of alternative intertemporal preference representations in a model of economic growth, stock pollutant and endogenous risk of catastrophic collapse. We contrast the traditional "discounted utility" model, which assumes risk neutrality with respect to intertemporal utility, with...

This paper summarizes environmental considerations that the Bank should take into account in preparing its new country strategy with Bolivia (2011-2015). Some of these are already contemplated to a certain extent in the existing strategy. Following this introductory section, which briefly...

This document has been prepared as an input to the Bank's Guyana Country Strategy (2012-2016). Its purpose is to identify key environmental issues in Guyana and provide recommendations for the Bank in terms of investments to anticipate risks related to sensitive sectors, programs, and projects...

The Environment and Safeguards Group (ESG) of the IDB has examined how potential environmental and social risks of major Bank-supported road improvement investments in natural resource rich and socio-culturally diverse "frontier" regions have been identified and addressed in various parts of...

Intertemporal correlation aversion is an intuitive concept indicating whether an individual prefers lotteries concerning consumption at different moments in time to be positively or negatively correlated. I show that the difference between the coefficient of relative risk aversion and the...

I compare two different ways of integrating mortality into life-cycle models: the standard additive model with time preferences, on the one hand, and a formulation that rules out the existence of time preference, but allows for risk aversion with respect to the length of life, on the other hand....