Climate change has become one of the most prominent concerns globally. In this paper, we study the transition risk of … greenhouse gas emission reduction in structural environmental-macroeconomic DSGE models. First, we analyze the uncertainty in … and output growth during the transition risk. With optimal carbon price designs, it should react even less to inflation …

-related damages and uncertainty that reduce productivity growth and raise precautionary savings. Instead, in scenarios that assume … climate change on r* can be substantial, even taking into account the high degree of uncertainty about the outcomes. Moreover …

This article discusses the need for climate change risk mitigation and why it is not the responsibility of Central … Banks to mitigate climate change risk. The paper argues that the responsibility for managing climate change risk should lie …

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 …