Despite overwhelming scientific evidence for man-made climate change, many people remain skeptical. While this phenomenon of `climate-skepticism' prevents implementation of environmental policies around the globe, it is ignored in economic models of climate change. In this paper I fill this gap...

Recent theoretical work in the economics of climate change has suggested that climate policy is highly sensitive to "fat-tailed" risks of catastrophic outcomes (Weitzman, 2009b). Such risks are suggested to be an inevitable consequence of scientific uncertainty about the effects of increased...

Climate skeptics argue that the possibility that global warming is exogenous implies that we should not take additional action towards reducing greenhouse gas emissions until we know more. However this paper shows that even climate skeptics have an incentive to reduce emissions: such a change of...