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. … the resulting warming over the next decades and centuries highly uncertain. We quantify how this uncertainty changes the …

-DICE2016, which is designed to address three key aspects of climateeconomy models: treatment of uncertainty, the use of more … difficulties identified with IAMs, the choice of the risk aversion parameter and the underestimation of damages, are also directly … parameters whose distributions have "fat tails". Uncertainty is accommodated via the state-contingent approach enabling us to …

uncertainty over climate change and its impact, why there is so much uncertainty, and why we will continue to face uncertainty in … the near future. I also explain the policy implications of climate change uncertainty. First, the uncertainty … stronger actions to reduce CO2 emissions. Second, uncertainty interacts with two kinds of irreversibilities. First, CO2 remains …

reason, distinct from learning spillovers, is that reducing greenhouse gas emissions requires investment in long …

DICE based on empirical evidence and propose a plausible range for relative price changes. The uncertainty is substantial …

, clean technological progress, as well as uncertainty about climatic and economic factors, lead to lower emissions and … relative to a 'straw man' model with perfect capital mobility, fixed abatement costs and no uncertainty. …

economically optimal - creates high liability to firms and regulators that warrants a careful and deliberative risk management …