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International Environmental Agreements with Uncertainty, Learning and Risk Aversion

Finus, Michael - 2014

role of learning and risk aversion. It bridges two strands of literature: one focused on the role learning for the success … of IEA formation when countries are risk neutral and another that explores the implications of uncertainty and risk … aversion on IEA formation under no learning. Combining learning and risk aversion seems appropriate as the uncertainties …

Persistent link: https://www.econbiz.de/10013059058

Adaptation to catastrophic events with two layers uncertainty : central planner perspective

Bondarev, Anton; Krysiak, Frank C. - 2018

We study the optimal adaptation to extreme climate events by the central government in a setup where events are dynamically uncertain and the government does not know the true probabilities of events. We analyze different policy decision rules minimizing expected welfare losses for sites with...

Persistent link: https://www.econbiz.de/10011806379

Climate Change and Uncertainty : An Asset Pricing Perspective

Barnett, Michael - 2023

of climate risk that is significantly amplified and increasing in magnitude as climate change increases due to aversion …

Persistent link: https://www.econbiz.de/10014255764

Regulating Stock Externalities Under Uncertainty

Newell, Richard G.; Pizer, William A. - 2008

Using a simple analytical model incorporating benefits of a stock, costs of adjusting the stock, and uncertainty in costs, we uncover several important principles governing the choice of price-based policies (e.g., taxes) relative to quantity-based policies (e.g., tradable permits) for...

Persistent link: https://www.econbiz.de/10014159606

The fatter the tail, the fatter the climate agreement : simulating the influence of fat tails in climate change damages on the success of international climate negotiations

Dekker, Thijs; Dellink, Rob; Ketterer, Janina - 2013

International climate negotiations take place in a setting where uncertainties regarding the impacts of climate change are very large. In this paper, we examine the influence of increasing the probability and impact of large climate change damages, also known as the 'fat tail', on the formation...

Persistent link: https://www.econbiz.de/10009690831

Climate treaties and approaching catastrophes

Barrett, Scott - 2012 - 31 July 2011, Revised 24 July 2012, Second Revision 26 October 2012

If the threshold that triggers climate catastrophe is known with certainty, and the benefits of avoiding catastrophe are high relative to the costs, treaties can easily coordinate countries' behavior so as to avoid the threshold. Where the net benefits of avoiding catastrophe are lower, treaties...

Persistent link: https://www.econbiz.de/10009684058

Risk and Aversion in Assessing Climate Policy

Crost, Benjamin - 2013

economic model. Modern decision theory and its applications to finance show that this discounted expected utility model is … incapable of simultaneously capturing adequate risk premia and a reasonable discount rate, leading to the equity premium and the … risk-free rate puzzles. We follow the finance literature in disentangling risk aversion from the propensity to smooth …

Persistent link: https://www.econbiz.de/10013081380

Decisionmaking, Risk, and Uncertainty : An Analysis of Climate Change Policy

Dholakia, Kruti - 2013

and decisionmaking? Third, how does the discussion of risk and uncertainty as originally proposed by Frank Knight (1921 …

Persistent link: https://www.econbiz.de/10013084265

Climate Dreaming : Negative Emissions, Risk Transfer, and Irreversibility

Shue, Henry - 2017

The Integrated Assessment Models used by the Intergovernmental Panel on Climate Change rely heavily on negative emissions technologies [NETs] for scenarios that keep global temperature rise to 2° C or lower. One favoured NET is bio-energy combined with carbon capture and storage [BECCS]. It is...

Persistent link: https://www.econbiz.de/10012960209

ACE – Analytic Climate Economy (with Temperature and Uncertainty)

Traeger, Christian P. - 2019

This paper is a revised version of: "https://ssrn.com/abstract=2667972" https://ssrn.com/abstract=2667972.The Analytic Climate Economy (ACE) closes a gap between analytic climate change assessments and quantitative numeric integrated assessment models (IAMs) used in policy advising. Its...

Persistent link: https://www.econbiz.de/10012896033