I analyze the marginal value of reducing greenhouse gas emissions (the "social cost of carbon") under uncertainty about warming, under uncertainty about how much warming reduces consumption, and under stochastic shocks to consumption growth. I theoretically demonstrate that each of these sources...

President Donald Trump has referred to climate change as a “hoax,” and in March 2017 issued Executive Order No. 13783, Promoting Energy Independence and Economic Growth. Section 5 of this Order directs federal agencies to discontinue use of the social cost of carbon (SCC), a protocol...

While there is a broad understanding that the financial system can play a major enabling role in achieving the low-carbon transition, it is not well understood under which specific conditions such an orderly transition scenario when finance works as an enabler could occur. Even more importantly,...