Environmental Risks and Precautionary Behaviour

Pablo Garcia Sanchez

Annals of Economics and Statistics, 2023, issue 150, 67-80

Abstract: Humanity is degrading natural capital at rates far greater than ever before, raising the likelihood of irreversible environmental damages. Using a simple cake-eating model, I argue that this heightened risk of irreversible damages fosters precautionary behaviour. That is, it becomes optimal to build a cushion of natural capital to make these damages less likely, and to limit the fall in consumption if they ever occur.

Keywords: Natural capital; Environmental Risks; Tipping Point (search for similar items in EconPapers)
JEL-codes: E20 Q50 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.jstor.org/stable/48731469 (text/html)

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:adr:anecst:y:2023:i:150:p:67-80

DOI: 10.2307/48731469

Access Statistics for this article

Annals of Economics and Statistics is currently edited by Laurent Linnemer

More articles in Annals of Economics and Statistics from GENES Contact information at EDIRC.
Bibliographic data for series maintained by Secretariat General () and Laurent Linnemer ().