Dynamic Uncertainty and Global Warming Risk
Date
01.01.1999
01.01.1999
Authors
Francesco Bosello, Michele Moretto
JEL Code
C5,D8,D9,O2,Q2
C5,D8,D9,O2,Q2
Keywords:
Climate change,irreversibility,endogenous-exogenous uncertainty
Climate change,irreversibility,endogenous-exogenous uncertainty
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
When economic agents decide their optimal environmental behavior, they have to take into account non continuos evolutionary trends and irreversible changes characterising environmental phenomena. Given the still non perfect biophysical and economic knowledge, decisions have to be taken in an uncertain framework. The paper analyses in the specific how agents’ optimal choices are affected by the presence of a future possible, but uncertain catastrophic occurrence provoked by a climate collapse due to global warming.