paper, we apply static and dynamic versions of a smooth ambiguity model to climate mitigation policy. We obtain a general … result on the comparative statics of optimal abatement and ambiguity aversion, and then extend our analysis to a more … realistic, dynamic setting, where we introduce scientific ambiguity into the well-known DICE model of the climate-economy system …

. Second, the paper introduces aversion to non-risk uncertainty (ambiguity). I show a close formal similarity between the model … smooth ambiguity aversion. I merge the models, achieving a threefold disentanglement between risk aversion, ambiguity …