Accounting for Different Uncertainties: Implications for Climate Investments?

Svenja Hector
Additional contact information
Svenja Hector: ETH Zurich Department of Management, Technology and Economics

No 2013.107, Working Papers from Fondazione Eni Enrico Mattei

Abstract: The paper clarifies the link between changes in risk aversion and the effect on the consumption discount rate. In a general framework that can cope with various forms of uncertainty, it is shown that the response of the consumption discount rate to a change in risk aversion depends on some fundamental properties of the considered uncertainties. The application of this general result to specific forms of uncertainty extends existing results to more general forms of risk and yields a new result on preference uncertainty.

Keywords: Discount Rate; Risk Aversion; Kreps-Porteus-Selden; Risk-Sensitive Preferences; Uncertain Preferences; Climate Change (search for similar items in EconPapers)
JEL-codes: D81 H43 Q54 (search for similar items in EconPapers)
Date: 2013-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://feem-media.s3.eu-central-1.amazonaws.com/w ... oads/NDL2013-107.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:fem:femwpa:2013.107

Access Statistics for this paper

More papers in Working Papers from Fondazione Eni Enrico Mattei Contact information at EDIRC.
Bibliographic data for series maintained by Alberto Prina Cerai ( this e-mail address is bad, please contact ).