On climate tail risks

Pablo Garcia Sanchez

No 164, BCL working papers from Central Bank of Luxembourg

Abstract: I model two ways climate tail risk could threaten the resources available for consumption in an otherwise standard cake-eating problem. I show that precautionary behaviour is optimal, no matter how low the probability of catastrophic climate outcomes.

Keywords: Climate change; Tail Risk; Tipping Point (search for similar items in EconPapers)
JEL-codes: E20 Q50 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2022-08
New Economics Papers: this item is included in nep-ene, nep-env and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bcl.lu/en/publications/Working-papers/164/BCLWP164.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcl:bclwop:bclwp164

Access Statistics for this paper

More papers in BCL working papers from Central Bank of Luxembourg Contact information at EDIRC.
Bibliographic data for series maintained by ().