by Heike Auerswald, Kai A. Konrad and Marcel Thum
- The future consequences of climate change are highly uncertain. Today, the exact size of possible future damages are widely unknown. Governments try to cope with these risks by investing in mitigation and adaptation measures. In contrast to the existing literature, we explicitly model the decision of risk-averse governments on mitigation and adaptation policies. Furthermore we also consider the interaction of the two strategies.
Auerswald, H., K.A. Konrad and M. Thum (2011). Adaptation, Mitigation and Risk-Taking in Climate Policy."" CESifo Working Paper No. 3320, Jan 2011.