the risk-adjusted interest rate. Adding damages leads to a higher carbon price that grows more slowly. But as temperature …

perturbation theory to derive an approximate tractable expression for this cost adjusted for climatic and economic risk. We allow … for different aversion to risk and intertemporal fluctuations, skewness and dynamics in the risk distributions of climate …

price rises at the risk-adjusted interest rate. Adding damages leads to a higher carbon price that grows more slowly. But as …

intergenerational inequality aversion and for risk aversion. If growth increases (reduces) intra-generational inequality, the SDR is …

price, the equilibrium risk-free rate, and risk premia. Climate disasters, which are more likely to occur sooner as … temperature rises, significantly increase risk premia. …

. Uncertainty about the future rate of growth of the economy and emissions and the risk of macroeconomic disasters (tail risks) also …

or 1.5oC. The safe carbon budget is lower if uncertainty about the transient climate response is high and risk tolerance …