Kousky, Carolyn; Kopp, Robert E.; Cooke, Roger M. - In: Economics: The Open-Access, Open-Assessment E-Journal 5 (2011) 2011-21, pp. 1-24
risk of catastrophic impacts. However, estimates of the social cost of carbon, which measures the marginal value of carbon … dioxide abatement, often do not capture this risk reduction benefit. Risk-averse individuals are willing to pay a risk premium … estimates obtained for calculating a risk premium to be included in the social cost of carbon. While more research is needed in …