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

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 …

optimal policy balance in the context of catastrophic climate risk. The analysis uses the WITCH integrated assessment model … with a module that models the endogenous risk of experiencing an economic catastrophe if temperature increases above a … certain threshold. We find that the risk of a catastrophic outcome would encourage countries to reduce emissions even in the …

balance in the context of climate catastrophic risk. The investigation enriches an integrated assessment model introducing the … caused by GHG emissions, and ultimately abatement choices. Results indicate that the presence of catastrophic risk induces … responsiveness of mitigation to changes in adaptation decreases. Compared to a world without climate catastrophes, risk reduces the …