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Millner, Antony - 2013

Economic evaluation of climate policy traditionally treats uncertainty by appealing to expected utility theory. Yet our knowledge of the impacts of climate policy may not be of sufficient quality to be described by unique probabilistic beliefs. In such circumstances, it has been argued that the...

Persistent link: https://www.econbiz.de/10013089317

Dark Clouds or Silver Linings? Knightian Uncertainty and Climate Change

Chen, Yu-Fu - 2013

This paper examines the impact of Knightian uncertainty upon optimal climate policy through the prism of a continuous-time real option modelling framework. We analytically determine optimal intertemporal climate policies under ambiguity. Additionally, numerical simulations are provided to...

Persistent link: https://www.econbiz.de/10013092649

Uncertainty and Decision in Climate Change Economics

Heal, Geoffrey M. - 2014

probabilistic terms: we are facing deep uncertainty or ambiguity rather than risk in the classical sense, rendering the classical …

Persistent link: https://www.econbiz.de/10013064266

Technology Variation vs. R&D Uncertainty : What Matters Most for Energy Patent Success?

Popp, David - 2014

R&D is an uncertain activity with highly skewed outcomes. Nonetheless, most recent empirical studies and modeling estimates of the potential of technological change focus on the average returns to research and development (R&D) for a composite technology and contain little or no information...

Persistent link: https://www.econbiz.de/10013066763

Risk Management and Climate Change

Kunreuther, Howard - 2018

The selection of climate policies should be an exercise in risk management reflecting the many relevant sources of … stakeholders differ in their degree of risk tolerance. This broader risk management approach enables one to examine a range of …

Persistent link: https://www.econbiz.de/10012938608

Minimax-Regret Climate Policy with Deep Uncertainty in Climate Modeling and Intergenerational Discounting

DeCanio, Stephen J.; Manski, Charles F.; Sanstad, Alan H. - National Bureau of Economic Research - 2022

Integrated assessment models have become the primary tools for comparing climate policies that seek to reduce greenhouse gas emissions. Policy comparisons have often been performed by considering a planner who seeks to make optimal trade-offs between the costs of carbon abatement and the...

Persistent link: https://www.econbiz.de/10012938685

An Analysis of the Dismal Theorem

Nordhaus, William D. - 2009

In a series of papers, Martin Weitzman has proposed a Dismal Theorem. The general idea is that, under limited conditions concerning the structure of uncertainty and preferences, society has an indefinitely large expected loss from high-consequence, low-probability events. Under such conditions,...

Persistent link: https://www.econbiz.de/10012765279

Climate change and individual behavior

Bernard, René; Tzamourani, Panagiota; Weber, Michael - 2022

This paper studies the causal effect of providing information about climate changeon individuals’ willingness to pay to offset carbon emissions in a randomizedcontrol trial. Receiving truthful information about ways to reduce CO2 emis-sions increases individuals’ willingness to pay for CO2...

Persistent link: https://www.econbiz.de/10012821798

Discounting the Future : on Climate Change, Ambiguity Aversion and Epstein-Zin Preferences

Olijslagers, Stan - 2019

analyze the effect of risk aversion, ambiguity aversion and the elasticity of intertemporal substitution on the willingness to … pay to avoid climate change risk. The first part of the paper analyzes a general disaster (jump) risk model with a … constant arrival rate of disasters. This provides useful intuition in how preferences influence valuation of long-term risk …

Persistent link: https://www.econbiz.de/10012871773

Agreeing on Robust Decisions : New Processes for Decision Making Under Deep Uncertainty

Kalra, Nidhi - 2017

Investment decision making is already difficult for any diverse group of actors with different priorities and views. But the presence of deep uncertainties linked to climate change and other future conditions further challenges decision making by questioning the robustness of all purportedly...

Persistent link: https://www.econbiz.de/10012973144