We calculate the social cost of carbon (SCC) under stochastic climate volatility resulting from uncertainty about … future climate risk regimes where weather extremes are becoming more frequent and intense. Using a stochastic dynamic …

We study general equilibrium asset prices in a multi-period endowment economy when agents' risk aversion is allowed to … depend on the maturity of the risk. We find horizon-dependent riskaversion preferences generate a decreasing term structure … of risk premia if and only if volatility is stochastic. Our model can thus justify the recent empirical results on the …