The treatment of risk and uncertainty in the US social cost of carbon for regulatory impact analysis

Economics

Volumn 6, Issue , 2012, Pages

  Dietz, Simon ^a  

^a LONDON SCHOOL OF ECONOMICS   (United Kingdom)

Author keywords

Ambiguity; Climate change; Discounting; Integrated assessment modelling; Risk; Social cost of carbon; Uncertainty

Indexed keywords

EID: 84865096286     PISSN: None     EISSN: 18646042     Source Type: Journal    
DOI: 10.5018/economics-ejournal.ja.2012-18     Document Type: Article

References (24)

1. Ackerman, F., & Stanton, E. A. (2012). Climate Risks and Carbon Prices: Revising the Social Cost of Carbon. Economics: The Open-Access, OpenAssessment E-Journal, Vol. 6, 2012-10. http://dx.doi.org/10.5018/economics-ejournal.ja.2012-10
2. Ackerman, F., Stanton, E. A., & Bueno, R. (2010). Fat Tails, Exponents, and Extreme Uncertainty: Simulating Catastrophe in DICE. Ecological Economics, 69(8): 1657-1665. http://ideas.repec.org/a/eee/ecolec/v69y2010i8p1657-1665.html
3. Camerer, C., & Weber, M. (1992). Recent Development in Modeling Preferences: Uncertainty and Ambiguity. Journal of Risk and Uncertainty, 5(4): 325-370. http://ideas.repec.org/a/kap/jrisku/v5y1992i4p325-70.html
4. Clarkson, R., & Deyes, K. (2002). Estimating the Social Cost of Carbon Emissions. London: HM Treasury.
5. Department of Energy and Climate Change (DECC). (2008). Carbon Valuation in UK Policy Appraisal: a Revised Approach. London: DECC.
6. Dietz, S. (2011). High Impact, Low Probability? An Empirical Analysis of Risk in the Economics of Climate Change. Climatic Change, 103(3): 519-541. http://dx.doi.org/10.1007/s10584-010-9993-4
7. Dietz, S., & Fankhauser, S. (2010). Environmental Prices, Uncertainty, and Learning. Oxford Review of Economic Policy, 26(2): 270-284. http://oxrep.oxfordjournals.org/content/26/2/270.abstract
8. Gilboa, I. (2009). Theory of Decision under Uncertainty. Cambridge. UK: Cambridge University Press.
9. Hahn, R. W., & Tetlock, P. C. (2008). Has Economic Analysis Improved Regulatory Decisions? Journal of Economic Perspectives, 22(1): 67-84. http://www.aeaweb.org/articles.php?doi=10.1257/jep.22.1.67
10. Hanemann, M. (2008). What is the Economic Cost of Climate Change? Berkeley, CA: University of California.
11. Interagency Working Group on Social Cost of Carbon. (2010). Appendix 15A. Social Cost of Carbon for Regulatory Impact Analysis under Executive Order 12866. In U.S. Department of Energy (Ed.), Final Rule Technical Support Document (TSD): Energy Efficiency Program for Commercial and Industrial Equipment: Small Electric Motors. Washington, DC: U.S. Department of Energy.
12. Klibanoff, P., Marinacci, M., & Mukerji, S. (2005). A Smooth Model of Decision Making Under Ambiguity. Econometrica. 73(6): 1849-1892 http://ideas.repec.org/a/ecm/emetrp/v73y2005i6p1849-1892.html
13. Knight, F. H. (1921). Risk, Uncertainty and Profit. Boston: Houghton Mifflin.
14. Millner, A., Dietz, S., & Heal, G. (2010). Ambiguity and Climate Policy. NBER Working Papers 16050. Cambridge, MA. http://ideas.repec.org/p/nbr/nberwo/16050.html
15. Nordhaus, W. D. (2008). A Question of Balance: Weighing the Options on Global Warming Policies. New Haven and London: Yale University Press.
16. Nordhaus, W. D., & Boyer, J. (2000). Warming the World: Economic Models of Global Warming. Cambridge, Mass.: MIT Press.
17. Pizer, W. A. (2002). Combining Price and Quantity Controls to Mitigate Global Climate Change. Journal of Public Economics, 85(3): 409-534. http://ideas.repec.org/a/eee/pubeco/v85y2002i3p409-434.html
18. Smith, L. A. (2002). What Might We Learn from Climate Forecasts. Proceedings of the National Academy of Sciences, 99(Suppl 1): 2487-2492. http://www.pnas.org/content/99/suppl.1/2487.abstract
19. Stern, N. (2007). The Economics of Climate Change: The Stern Review. Cambridge, UK: Cambridge University Press.
20. Tol, R. S. J. (2008). The Social Cost of Carbon: Trends, Outliers and Catastrophes. Economics: The Open-Access, Open-Assessment E-Journal, Vol. 2, 2008-25. http://dx.doi.org/10.5018/economics-ejournal.ja.2008-25
21. Warren, R., Hope, C., Mastrandrea, M., Tol, R., Adger, N., & Lorenzoni, I. (2006). Spotlighting Impacts Functions in Integrated Assessment: Research Report Prepared for the Stern Review on the Economics of Climate Change. Tyndall Working Paper 91. Tyndall Centre for Climate Change Research.
22. Weitzman, M. L. (1974). Prices Versus Quantities. Review of Economic Studies, 41(4): 477-491. http://ideas.repec.org/a/bla/restud/v41y1974i4p477-91.html
23. Weitzman, M. L. (2009). On Modeling and Interpreting the Economics of Catastrophic Climate Change. Review of Economics and Statistics, 91(1), 1-19. http://ideas.repec.org/a/tpr/restat/v91y2009i1p1-19.html
24. Weitzman, M. L. (2012). GHG Targets as Insurance Against Catastrophic Climate Damages. Journal of Public Economic Theory, 14(2), 221-244. http://ideas.repec.org/a/bla/jpbect/v14y2012i2p221-244.html