Mitigating disaster risks caused by carbon emissions

Weizhen Meng, Shilin Li and Jinqiang Yang

Economics Letters, 2024, vol. 241, issue C

Abstract: This paper presents a dynamic mitigation policy model incorporating the carbon cycle. As carbon stocks increase, mitigation spending increases. However, frequent disasters erode agents’ mitigation confidence, reducing mitigation spending and increasing consumption. The social costs of carbon and risk premiums follow a similar trend, changing with carbon stocks.

Keywords: Carbon emissions; Catastrophes; Asset prices; Climate policy (search for similar items in EconPapers)
JEL-codes: G01 G12 Q54 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:241:y:2024:i:c:s016517652400301x

DOI: 10.1016/j.econlet.2024.111817

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