We use perturbation methods to derive a rule for the optimal risk-adjusted social cost of carbon (SCC) that … different aversions to risk and intertemporal fluctuations, convex damages, uncertainties in economic growth, atmospheric carbon …-run climate feedbacks. Our non-certainty-equivalent rule for the SCC incorporates precaution, risk insurance, and climate …

warming, specifically, long-run temperature shifts. We find that global warming carries a positive risk premium that increases … projected temperature path, the observed consumption growth dynamics, discount rates provided by the risk-free rate and equity …