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Risk management and climate change


  • Howard Kunreuther

    (Wharton School, University of Pennsylvania)

  • Geoffrey Heal

    (Columbia Business School)

  • Myles Allen

    (School of Geography and the Environment, University of Oxford)

  • Ottmar Edenhofer

    (Potsdam Institute for Climate Impact Research
    Mercator Research Institute on Global Commons and Climate Change)

  • Christopher B. Field

    (Carnegie Institution for Science)

  • Gary Yohe

    (Wesleyan University)


Climate change studies rarely yield consensus on the probability distribution of exposure, vulnerability, or possible outcomes, and therefore the evaluation of alternative policy strategies is difficult. This Perspective highlights the importance of decision-making tools designed for situations where generally agreed-upon probability distributions are not available and stakeholders show different degrees of risk tolerance.

Suggested Citation

  • Howard Kunreuther & Geoffrey Heal & Myles Allen & Ottmar Edenhofer & Christopher B. Field & Gary Yohe, 2013. "Risk management and climate change," Nature Climate Change, Nature, vol. 3(5), pages 447-450, May.
  • Handle: RePEc:nat:natcli:v:3:y:2013:i:5:d:10.1038_nclimate1740
    DOI: 10.1038/nclimate1740

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    References listed on IDEAS

    1. Stephen H. Schneider, 2001. "What is 'dangerous' climate change?," Nature, Nature, vol. 411(6833), pages 17-19, May.
    2. Simon Dietz, 2011. "High impact, low probability? An empirical analysis of risk in the economics of climate change," Climatic Change, Springer, vol. 108(3), pages 519-541, October.
    3. Kunreuther,Howard C. & Pauly,Mark V. & McMorrow,Stacey, 2013. "Insurance and Behavioral Economics," Cambridge Books, Cambridge University Press, number 9780521845724, November.
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    5. Kunreuther, Howard & Meszaros, Jacqueline & Hogarth, Robin M. & Spranca, Mark, 1995. "Ambiguity and underwriter decision processes," Journal of Economic Behavior & Organization, Elsevier, vol. 26(3), pages 337-352, May.
    6. Martin L. Weitzman, 2009. "On Modeling and Interpreting the Economics of Catastrophic Climate Change," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 1-19, February.
    7. Peter Klibanoff & Massimo Marinacci & Sujoy Mukerji, 2005. "A Smooth Model of Decision Making under Ambiguity," Econometrica, Econometric Society, vol. 73(6), pages 1849-1892, November.
    8. Malte Meinshausen & Nicolai Meinshausen & William Hare & Sarah C. B. Raper & Katja Frieler & Reto Knutti & David J. Frame & Myles R. Allen, 2009. "Greenhouse-gas emission targets for limiting global warming to 2 °C," Nature, Nature, vol. 458(7242), pages 1158-1162, April.
    9. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    More about this item

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming


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