-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 …

growth rate impact if damages are presumably severe. We also study the effect of varying risk aversion and elasticity of … intertemporal substitution on our results. If damages are moderate for high temperatures, risk aversion only matters when climate … temperatures, then the results also become sensitive to risk aversion for both damage specifications. …

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

or 1.5oC. The safe carbon budget is lower if uncertainty about the transient climate response is high and risk tolerance …

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 …

, 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. …

The precise consequences of climate change remain uncertain. We incorporate damage uncertainty into a joint model of … analyze uncertainty by means of sensitivity analysis and Monte-Carlo simulations. These methods have serious limitations in … deriving a carbon tax or cap under uncertainty: they do not incorporate the interaction between stochastic climate impacts and …