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

difficulties identified with IAMs, the choice of the risk aversion parameter and the underestimation of damages, are also directly …

-form expressions of welfare loss from shocks and epistemological uncertainty identify the interaction of (intertemporal) risk attitude …

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

This paper uses insights from decision theory under uncertainty to explore research challenges in climate economics. We … embrace a broad perspective of uncertainty with three components: risk (probabilities assigned by a given model), ambiguity … for using models to provide policy guidance. The uncertainty components and their implications for decision theory help us …

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 …

announcements, can trap the economy into a vicious circle of credibility loss, carbon-intensive investments and increasing risk …