FEEM seminar on “Collective risk management: prevention and risk sharing”
Maddalena Ferranna from Toulouse School of Economics presents a study on the relationship between prevention and risk sharing in the optimal design of a climate policy. Generally speaking, mitigation tends to rise either when the event is catastrophic, or when the social planner is not very prudent and the inequality risk small. This study shows that, contrary to intuition, risk sharing and prevention are usually complementary.
Fondazione Eni Enrico Mattei