There is some evidence that people have biased perceptions of risks, such as lethal or environmental risks. Hence their behavior is based on beliefs which may di¤er from the ’objective’ beliefs used by a regulator. The optimal regulation then depends on this di¤erence in...

The paper investigates a climate-economy model with an iso-elastic welfare function in which one parameter gamma measures relative risk-aversion and a distinct parameter rho measures resistance to intertemporal substitution. We show both theoretically and numerically that climate policy responds...

Les auteurs cherchent à justifier le principe de précaution (Traité de Maastricht) qui veut que l'absence de certitudes, compte tenu des connaissances scientifiques du moment, ne retarde pas l'adoption de mesures de prévention des risques. Pour ce faire, ils considèrent le problème d'un...

There is some evidence that people have biased perceptions of risks, such as lethal or environmental risks. Hence their behavior is based on beliefs which may di¤er from the ’objective’ beliefs used by a regulator. The opti-mal regulation then depends on this difference in...