the resulting warming over the next decades and centuries highly uncertain. We quantify how this uncertainty changes the … making under uncertainty. It clarifies the distinct roles of risk aversion, prudence, characteristics of the damage … formulation, and future policy response. We show that an optimal response to uncertainty substantially reduces the risk premium. …

I analyze the marginal value of reducing greenhouse gas emissions (the "social cost of carbon") under uncertainty about … warming, under uncertainty about how much warming reduces consumption, and under stochastic shocks to consumption growth. I … theoretically demonstrate that each of these sources of uncertainty increases the social cost of carbon under conventional …