Model Uncertainty in Climate Change Economics
Loïc Berger and
No 616, Working Papers from IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University
We review recent models of choices under uncertainty that have been proposed in the economic literature. The framework that we propose is general and may be applied in many different fields of environmental economics. To illustrate, we provide a simple application in the context of an optimal mitigation policy. Our objective is to offer guidance to policy makers who face uncertainty when designing climate policy.
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