Global warming and extreme events: rethinking the timing and intesity of environmental policy. / Chen, Yu-Fu; Funke, Michael.
University of Dundee, 2010. (Dundee Discussion Papers in Economics; 236).Research output: Working paper › Discussion paper
}
TY - UNPB
T1 - Global warming and extreme events: rethinking the timing and intesity of environmental policy
A1 - Chen,Yu-Fu
A1 - Funke,Michael
AU - Chen,Yu-Fu
AU - Funke,Michael
PB - University of Dundee
PY - 2010
Y1 - 2010
N2 - The possibility of low-probability extreme events has reignited the debate over the optimal intensity and timing of climate policy. In this paper we therefore contribute to the literature by assessing the implications of low-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results indicate the importance of tail risk and call for foresighted pre-emptive climate policies.
AB - The possibility of low-probability extreme events has reignited the debate over the optimal intensity and timing of climate policy. In this paper we therefore contribute to the literature by assessing the implications of low-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results indicate the importance of tail risk and call for foresighted pre-emptive climate policies.
KW - Climate policy
KW - Extreme events
KW - Real options
KW - Levy process
M1 - Discussion paper
BT - Global warming and extreme events: rethinking the timing and intesity of environmental policy
T3 - Dundee Discussion Papers in Economics
T3 - en_GB
ER -