Dynamic Uncertainty and Global Warming Risk

74 Pages Posted: 5 Mar 2000 Last revised: 25 Feb 2015

See all articles by Francesco Bosello

Francesco Bosello

University of Milan - Department of Economics, Business and Statistics; CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

Michele Moretto

University of Padua, Dep of Economics and Management

Date Written: November 1, 1999

Abstract

When economic agents decide their optimal environmental behavior, they have to take into account non continuos evolutionary trends and irreversible changes characterising environmental phenomena. Given the still non perfect biophysical and economic knowledge, decisions have to be taken in an uncertain framework. The paper analyses in the specific how agents' optimal choices are affected by the presence of a future possible, but uncertain catastrophic occurrence provoked by a climate collapse due to global warming.

JEL Classification: C5, D8, D9, O2, Q2

Suggested Citation

Bosello, Francesco and Moretto, Michele, Dynamic Uncertainty and Global Warming Risk (November 1, 1999). FEEM Working Paper No. 80.99, Available at SSRN: https://ssrn.com/abstract=200575 or http://dx.doi.org/10.2139/ssrn.200575

Francesco Bosello (Contact Author)

University of Milan - Department of Economics, Business and Statistics

Via Festa del Perdono, 7
Milan, 20122
Italy

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Michele Moretto

University of Padua, Dep of Economics and Management ( email )

via Del Santo 33
Padova, 35123
Italy
+39 049 8274265 (Phone)
+39 049 8274211 (Fax)

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