-run climate feedbacks. Our non-certainty-equivalent rule for the SCC incorporates precaution, risk insurance, and climate … different aversions to risk and intertemporal fluctuations, convex damages, uncertainties in economic growth, atmospheric carbon …We use perturbation methods to derive a rule for the optimal risk-adjusted social cost of carbon (SCC) that …

its evolution with economic growth. The social discount rate (SDR) should be adjusted to account for intragenerational and … intergenerational inequality aversion and for risk aversion. If growth increases (reduces) intra-generational inequality, the SDR is …

shows how carbon, temperature, and economic dynamics quantify the optimal mitigation effort. The model's descriptive power …-form expressions of welfare loss from shocks and epistemological uncertainty identify the interaction of (intertemporal) risk attitude …

We study a commons problem under uncertainty, where individual actions affect the risk of a future damage event. We … show that for risk-averse agents, an extra risk on the amount of the damage induces more precautionary actions in Nash … equilibrium. Similarly, for prudent agents an extra risk in all states of the world induces more precautionary actions in Nash …

making under uncertainty. It clarifies the distinct roles of risk aversion, prudence, characteristics of the damage … derive a general analytic formula for the "risk premium" governing the resulting climate policy. The formula generalizes … simple precautionary savings analysis to more complex economic interactions and it builds the economic intuition for policy …