instruments and quantity instruments. In this paper, we compare the two instruments in the presence of market uncertainty … intensity (i.e., emissions per unit of production) and the market uncertainty are both high or low, the expected social welfare …, especially for high-emitting industries when the market uncertainty is intermediate. The results are robust when incorporating …

or 1.5oC. The safe carbon budget is lower if uncertainty about the transient climate response is high and risk tolerance …