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Global Environmental Risks

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Author Info

  • Chichilnisky, G.
  • Heal, G.

Abstract

We consider the economics of global environmental risks. In this area, we are dealing with risks that are poorly understood, endogenous, collective, and irreversible. In policy terms, the nature and extent of uncertainty about global climate change implies that society's position will be dominated by two questions: What cost is worth incurring to reduce the poorly-understood risk of climate change, or to improve our understanding of the risk? How may existing social institutions, such as insurance contracts and securities markets, be used to provide the most efficient allocation of the risks associated with global climate change?

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Bibliographic Info

Paper provided by Columbia University, Department of Economics in its series Discussion Papers with number 1993_03.

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Length: 27 pages
Date of creation: 1993
Date of revision:
Handle: RePEc:clu:wpaper:1993_03

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Keywords: environment ; risk;

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  1. Pindyck, Robert, 1989. "Irreversibility, uncertainty, and investment," Policy Research Working Paper Series 294, The World Bank.
  2. William R. Cline, 1992. "Economics of Global Warming, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 39.
  3. Wise, Sherry & Johnson, Stanley R. & Just, Richard E. & Bockstael, Nancy, 1991. "Commodity and Resource Policies in Agricultural Systems," Staff General Research Papers 396, Iowa State University, Department of Economics.
  4. Malinvaud, E., 1972. "The allocation of individual risks in large markets," Journal of Economic Theory, Elsevier, vol. 4(2), pages 312-328, April.
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