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Risk Aversion, time preference, and the social cost of carbon

Anthoff, David (contributor); Tol, Richard S. J. (contributor) - 2008

The Stern Review reported a social cost of carbon of over $300/tC, calling for ambitious climate policy. We here conduct a systematic sensitivity analysis of this result on two crucial parameters: the rate of pure time preference, and the rate of risk aversion. We show that the social cost of...