Fat Tails, Thin Tails, and Climate Change Policy

Fat Tails, Thin Tails, and Climate Change Policy

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Climate policy is complicated by the considerable compounded uncertainties over the costs and benefits of abatement. We don’t even know the probability distributions for future temperatures and impacts, making cost-benefit analysis based on expected values challenging to say the least. There are goo...

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Bibliographic Details
Main Author:	Pindyck, Robert S.
Format:	Working Paper
Language:	en_US
Published:	MIT Center for Energy and Environmental Policy Research 2010
Online Access:	http://hdl.handle.net/1721.1/59466

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