Ploeg, Frederick van der; Bremer, Ton van den - 2021
perturbation theory to derive an approximate tractable expression for this cost adjusted for climatic and economic risk. We allow … for different aversion to risk and intertemporal fluctuations, skewness and dynamics in the risk distributions of climate … sensitivity and the damage ratio, and correlated shocks. We identify prudence, insurance, and exposure effects, reproduce earlier …