increases the risk of the game, making cooperative action through a social planner more urgent. Asymmetric damages or asymmetric …

Combining euro-area credit register and carbon emission data, we provide evidence of a climate risk-taking channel in … committed to decarbonization. Consistently with the risk-taking channel of monetary policy, tighter policy induces banks to … increase both credit risk premia and carbon emission premia, and reduce lending to high emission firms more than to low …

system in the low-carbon transition can lead to a large underestimation of climate transition risk. The set of scenarios that … financial supervisors recommended to investors to analyse climate transition risk include scenarios labelled as ‘disorderly … reshaped depending on the timing and the extent by which financial actors assess climate risk …

derive a general analytic formula for the “risk premium” governing the resulting climate policy. The formula generalizes … making under uncertainty. It clarifies the distinct roles of risk aversion, prudence, characteristics of the damage … formulation, and future policy response. We show that an optimal response to uncertainty substantially reduces the risk premium …

This note considers the treatment of risk and uncertainty in the recently established "social cost of carbon" (SCC) for … discounting, it mis-estimated climate risk, possibly hugely. Given the uncertainty about estimating the SCC, the note concludes by … that very target. -- Ambiguity ; climate change ; discounting ; integrated assessment modelling ; risk ; social cost of …

This note considers the treatment of risk and uncertainty in the recently established "social cost of carbon" (SCC) for … discounting, it mis-estimated climate risk, possibly hugely. Given the uncertainty about estimating the SCC, the note concludes by … that very target. -- ambiguity ; climate change ; discounting ; integrated assessment modelling ; risk; social cost of …

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 …

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