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

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 …

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 …

sectors via the destruction of capital stocks and jumps in risk premia. These disruptions often entail negative feedback … effects of rare large disasters resulting in capital losses and rising risk premia. Our proposed multi-phase dynamic model …

intergenerational inequality aversion and for risk aversion. If growth increases (reduces) intra-generational inequality, the SDR is …

Risk parity has been considered a heuristic asset allocation method. In this paper, we show that, to the contrary, risk … parity is a special case of a mean-risk type of a portfolio optimization problem with log-regularization to constrain weights … unconstrained mean-risk portfolio and a risk parity (or risk budgeted in general) portfolio. We also demonstrate in a Bayesian …

portfolios that help mitigating climate change risk but at the same time enable harvesting well-established return drivers such …