economic model. Modern decision theory and its applications to finance show that this discounted expected utility model is … economic policy. We derive the optimal climate policies accounting for the full interaction between uncertain damage … incapable of simultaneously capturing adequate risk premia and a reasonable discount rate, leading to the equity premium and the …

insurance market risk preferences when evaluating projects related to reducing climate impacted risks. The model is applied to a … is shorter when the insurance market is more risk averse or when a more serious scenario for climatic change is assumed …Public investment into risk reduction infrastructure plays an important role in facilitating adaptation to climate …

role of learning and risk aversion. It bridges two strands of literature: one focused on the role learning for the success … of IEA formation when countries are risk neutral and another that explores the implications of uncertainty and risk … aversion on IEA formation under no learning. Combining learning and risk aversion seems appropriate as the uncertainties …

since added another wrinkle, by pointing to the need to separate risk aversion from intertemporal substitution to calibrate …-Zin preferences to allow for the separate treatment of risk aversion and intertemporal substitution …

Common integrated assessment models produce the counterintuitive result that higher risk aversion does not lead to …. The simulations show that aversion to this tipping point risk has little effect. For climate sensitivity of realistic …