Details

Autor(en) / Beteiligte

• Costello, Christopher J
• Neubert, Michael G
• Polasky, Stephen A
• Solow, Andrew R

Titel

Bounded uncertainty and climate change economics

Ist Teil von

• Proceedings of the National Academy of Sciences - PNAS, 2010-05, Vol.107 (18), p.8108-8110

Ort / Verlag

United States: National Academy of Sciences

Erscheinungsjahr

2010

Quelle

MEDLINE

Beschreibungen/Notizen

• It has been argued recently that the combination of risk aversion and an uncertainty distribution of future temperature change with a heavy upper tail invalidates mainstream economic analyses of climate change policy. A simple model is used to explore the effect of imposing an upper bound on future temperature change. The analysis shows that imposing even a high bound reverses the earlier argument and that the optimal policy, as measured by the willingness to pay to avoid climate change, is relatively insensitive to this bound over a wide range.