, which are disproportionately affected by climate change, raises significant concerns. This study shows that sovereign risk …. Countries with elevated risk levels are disproportionately vulnerable to climate change compared to their lower-risk … vulnerability to climate change, in terms of sovereign risk, particularly for countries with low spreads and long-term debt …

composition of the optimal mix as both persuade the risk-averse social planner to invest more in mitigation. Overall, we identify …

derive a general analytic formula for the "risk premium" governing the resulting climate policy. The formula generalizes … 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. …

risk -- optimal policy comprises strong controls. To focus on these features and facilitate comparison with Nordhaus' work …

assessment model (IAM) with long-run risk, adapting methods from the asset pricing literature to deal with endogenous climate … risk. The model solves in closed-form for general degrees of risk aversion, stochastic climate feedbacks, and a stochastic …

sectors via the destruction of capital stocks and jumps in risk premia. These disruptions often entail negative feedback … effects of rare large disasters resulting in capital losses and rising risk premia. Our proposed multi-phase dynamic model …