Articles

Declining CO₂ price paths

Daniel, Kent D.; Litterman, Robert B.; Wagner, Gernot

Risk and uncertainty are important in pricing climate damages. Despite a burgeoning literature, attempts to marry insights from asset pricing with climate economics have largely failed to supplement—let alone supplant—decades-old climate–economy models, largely due to their analytic and computational complexity. Here, we introduce a simple, modular framework that identifies core trade-offs, highlights the sensitivity of results to key inputs, and helps pinpoint areas for further work.

Files

Also Published In

More About This Work

Academic Units
Business
Published Here
August 22, 2023