. Uncertainty about the future rate of growth of the economy and emissions and the risk of macroeconomic disasters (tail risks) also …

The precise consequences of climate change remain uncertain. We incorporate damage uncertainty into a joint model of … analyze uncertainty by means of sensitivity analysis and Monte-Carlo simulations. These methods have serious limitations in … deriving a carbon tax or cap under uncertainty: they do not incorporate the interaction between stochastic climate impacts and …

uncertainty. The paper derives the resulting changes of the risk-free and the stochastic social discount rate and points out the … recent debate and the models on climate change assessment. First, removing an implicit assumption of (intertemporal) risk … neutrality reduces the growth effect in social discounting and significantly amplifies the importance of risk and correlation …

that stochastic technology growth hardly affects the optimal bundle of mitigation and adaptation whereas uncertainty about … composition of the optimal mix as both persuade the risk-averse social planner to invest more in mitigation. Overall, we identify … that including uncertainty into the model tends to favour (long-lasting) mitigation with respect to (instantaneous …

from climate change to damages is subject to uncertainty, as opposed to risk, and we use robust control to study efficiency …We study a dynamic stochastic general equilibrium model in which agents are concerned about model uncertainty regarding … growth in the presence and in the absence of concerns about model uncertainty, and find that these can lead to substantially …

involve issues such as the discount rate, uncertainty, the social cost of carbon, the potential for catastrophic climate …

We use perturbation methods to derive a rule for the optimal risk-adjusted social cost of carbon (SCC) that … different aversions to risk and intertemporal fluctuations, convex damages, uncertainties in economic growth, atmospheric carbon …-run climate feedbacks. Our non-certainty-equivalent rule for the SCC incorporates precaution, risk insurance, and climate …