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 …

of climate risk that is significantly amplified and increasing in magnitude as climate change increases due to aversion …

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 …