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In a Ramsey policy regime, heterogeneity in beliefs about the potential costs of climate change is shown to produce policy ambiguities that alter carbon prices and taxation. Three sources of ambiguity are considered: (i) the private sector is skeptical, with beliefs that are unknown to the...
Persistent link: https://www.econbiz.de/10014237108
analytical results, and offer analytical insights into numerical results on the effects of economic and damage ratio uncertainty …
Persistent link: https://www.econbiz.de/10012545108
We use perturbation methods to derive a rule for the optimal risk-adjusted social cost of carbon (SCC) that incorporates the effects of uncertainties associated with climate and the economy from a calibrated DSGE model. We allow for different aversions to risk and intertemporal fluctuations,...
Persistent link: https://www.econbiz.de/10011996310
The complexity of integrated assessment models (IAMs) prevents the direct appreciation of the impact of uncertainty on …
Persistent link: https://www.econbiz.de/10010940834
derives max-min, max-max and min-max regret policies to deal with this particular form of climate (model) uncertainty and with …
Persistent link: https://www.econbiz.de/10012947620
The complexity of integrated assessment models (IAMs) prevents the direct appreciation of the impact of uncertainty on …
Persistent link: https://www.econbiz.de/10014166039
-making under conditions of extreme uncertainty, to examine the conditions under which technology incentives should be a key … potential adopters can reduce their uncertainty about the performance of new technologies by querying the experience of other …
Persistent link: https://www.econbiz.de/10005835929
We show that, in a model without commitment to future policies, geoengineering breakthroughs can have adverse environmental and welfare effects because they change the (equilibrium) carbon taxes. In our model, energy producers emit carbon, which creates a negative environmental externality, and...
Persistent link: https://www.econbiz.de/10011820231
uncertainty in global warming policy. I show that through robust control, policy makers can implement the precautionary principle … in either uncertainty about the model or risk about abatement cost increases expected steady state pollution taxes; (2) a … robust policy is preferred for any level of model uncertainty and this preference increases for either higher model …
Persistent link: https://www.econbiz.de/10012770526
This paper examines the double dividend hypothesis in the presence of labour income uncertainty. Empirical evidence … shows that uncertainty over labour income is particularly significant in developing, while not negligible in developed … countries. Under uncertainty, and assuming incomplete capital markets, the tax system plays a role in providing social insurance …
Persistent link: https://www.econbiz.de/10012721022