Pricing carbon and adjusting capital to fend off climate catastrophes

Pricing carbon and adjusting capital to fend off climate catastrophes

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The optimal reaction to a potential productivity shock as a consequence of climate tipping is to substantially tax carbon in order to curb the risk of tipping, but to adjust capital as well in order to smooth consumption when tipping occurs. We also allow for conventional marginal climate damages an...

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Autors principals:	Van der Ploeg, R, de Zeeuw, A
Format:	Working paper
Publicat:	University of Oxford 2018

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