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This note considers the treatment of risk and uncertainty in the recently established social cost of carbon (SCC) for analysis of federal regulations in the United States. It argues that the analysis of the US Interagency Working Group on Social Cost of Carbon did not go far enough into the tail...
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populated by both standard expected utility maximizers and by ambiguity-averse investors that trade in the market for a risky … asset. We show that, provided there is a sufficient amount of ambiguity, market breakdowns where large portions of traders … to ambiguity. When we analyze the effect of policy actions, we find that when a market has fallen into a state of …
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This note considers the treatment of risk and uncertainty in the recently established social cost of carbon (SCC) for analysis of federal regulations in the United States. It argues that the analysis of the US Interagency Working Group on Social Cost of Carbon did not go far enough into the tail...
Persistent link: https://www.econbiz.de/10010309048
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