stimulate efficient adaptation and mitigation should not exclusively rely on the assumption of the homo oeconomicus, but take … outcomes. This paper systematically reviews what prospect theory can offer to analyse mitigation and adaptation. It is shown …-known puzzles in the climate debate, including (but not limited to) the different uptake of mitigation and adaptation amongst …

composition of the optimal mix as both persuade the risk-averse social planner to invest more in mitigation. Overall, we identify … light on how the optimal balance between mitigation and adaptation changes under different stochastic scenarios. We find … that stochastic technology growth hardly affects the optimal bundle of mitigation and adaptation whereas uncertainty about …

, while the situation reverses afterwards. Over the century, the risk premium correction fosters more mitigation, which … uncertainty into Integrated Assessment Models (IAMs). Uncertainty is transformed into a risk-premium, damage-correction, region …. This risk premium quantifies what society would be willing to pay to insure against the uncertainty of the damages, and it …

the catastrophic losses, and an effort strategy (mitigation) aimed at reducing the frequency of such losses. The … optimal mix of mitigation/effort strategies allows to reduce the volatility of the economic growth rate, even if its level may …