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takes explicit account of model uncertainty. To this end, the value function we propose is an analogue of the well …-known success-probability criterion adapted to settings characterized by model uncertainty. We apply this decision criterion to …
Persistent link: https://www.econbiz.de/10011614242
Asset pricing and climate policy are analyzed in a global economy where consumption goods are produced by both a green and a carbon-intensive sector. We allow for endogenous growth and three types of damages from global warming. It is shown that, initially, the desire to diversify assets...
Persistent link: https://www.econbiz.de/10012258563
. Uncertainty about the future rate of growth of the economy and emissions and the risk of macroeconomic disasters (tail risks) also …
Persistent link: https://www.econbiz.de/10012249287
Smallholder farmers in developing countries are particularly vulnerable to climate shocks but often lack access to insurance. Weather index insurance (WII) is a promising innovation, but uptake has been lower than expected. WII contracts are not yet sufficiently tailored to the needs and...
Persistent link: https://www.econbiz.de/10011631011
The perception of risks associated with climate change appears to be a key factor for the support of climate policy measures. Using a generalized ordered logit approach and drawing on a unique data set originating from two surveys conducted in 2012 and 2014, each among more than 6,000 German...
Persistent link: https://www.econbiz.de/10011608005
Changing climate and weather patterns have resulted in reduced agricultural productivity in some parts of the world and put pressure on global food security. Availability and improved quality of meteorological information is seen as a potentially propitious means of adaptation to changing...
Persistent link: https://www.econbiz.de/10012053352
frameworks and techniques for analyzing climate policy in the context of uncertainty. This paper will give an overview of …
Persistent link: https://www.econbiz.de/10010955710
largely unknown how resource users cope with regime shifts, their uncertainty, and impacts. Here, we assess the potential for … of uncertainty about the presence of climate-induced thresholds on exploitation patterns. Results from four communities … evidence overwhelmingly proposing a negative relationship between uncertainty, collective action, and sustainable resource use …
Persistent link: https://www.econbiz.de/10012847329
Deep-seated, persistent uncertainty is a pernicious feature of climate change. One key parameter, equilibrium climate … for over thirty-five years. The marginal damages due to temperature increase rise rapidly. Thus, uncertainty in climate … known to be close to a mean value 3.0°C. The costs of this uncertainty are compounded given that the distribution of …
Persistent link: https://www.econbiz.de/10014126044
We document evidence that the CEOs who lead the firms that face higher climate change risk (CCR) receive higher equity-based compensation. Our finding is consistent with the compensating-wedge-differential theory and survives numerous robustness and endogeneity tests. The result is more...
Persistent link: https://www.econbiz.de/10014079534