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Suppose that there is a probability density function for how bad things might get, but that the overall rate at which this probability density function slims down to approach zero in the tail is uncertain. The paper shows how a basic precautionary principle of tail fattening could then apply....
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possibility of catastrophe, since we are unable to evaluate a risk averse representative agent's expected utility when there is …
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possibility of catastrophe, since we are unable to evaluate a risk averse representative agent's expected utility when there is …
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utility (MU) goes to negative infinite faster than the rate at which the probability of catastrophe goes to zero, and for the …
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Climate change is changing not only our physical world, but also our intellectual, social, and moral worlds. We are realizing that our situation is profoundly unsafe, interdependent, and uncertain. What, then, does climate change demand of economists, as human beings and as professionals? A...
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In this paper we analyse the influence on climate change by one of the most important factors: the energy production and consumption, who caused in the last decades important damages to the ecosystems. The available resources of energy production are quit
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