IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Global warming and extreme events: Rethinking the timing and intensity of environment policy

  • Michael Funke

    ()

  • Yu-Fu Chen

    ()

The possibility of low-probability extreme events has reignited the debate over the optimal intensity and timing of climate policy. In this paper we therefore contribute to the literature by assessing the implications of low-probability extreme events on environmental policy in a continous-time real options model with “tail risk”. In a nutshell, our results indicate the importance of tail risk and call for foresighted pre-emptive climate policies.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.uni-hamburg.de/fachbereiche-einrichtungen/fb03/iwwt/makro/GlobalWarm.pdf
Download Restriction: no

Paper provided by Hamburg University, Department of Economics in its series Quantitative Macroeconomics Working Papers with number 21007b.

as
in new window

Length:
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:ham:qmwops:21007b
Contact details of provider: Postal: Von-Melle-Park 5 D-20146 Hamburg
Phone: : +49 (0)40 42838-4674
Fax: +49 (0)40 42838-5546
Web page: http://www.uni-hamburg.de/onTEAM/grafik/1223630633/RePec/ham

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Falck, Oliver & Wößmann, Ludger, 2013. "School competition and students’ entrepreneurial intentions: International evidence using historical Catholic roots of private schooling," Munich Reprints in Economics 20629, University of Munich, Department of Economics.
  2. Alessandro Gambini & Alberto Zazzaro, 2010. "Long-Lasting Bank Relationships and Growth of Firms," CESifo Working Paper Series 3106, CESifo Group Munich.
  3. CREMER, Helmuth & GAHVARI, Firouz & PESTIEAU, Pierre, . "Accidental bequests: a curse for the rich and a boon for the poor," CORE Discussion Papers RP -2462, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Manzano, Carolina & Vives, Xavier, 2011. "Public and private learning from prices, strategic substitutability and complementarity, and equilibrium multiplicity," Journal of Mathematical Economics, Elsevier, vol. 47(3), pages 346-369.
  5. Hendrik Jürges & Eberhard Kruk & Steffen Reinhold, 2013. "The effect of compulsory schooling on health—evidence from biomarkers," Journal of Population Economics, Springer, vol. 26(2), pages 645-672, April.
  6. Bruno S. Frey & Lasse Steiner, 2010. "World Heritage List: does it make sense?," IEW - Working Papers 484, Institute for Empirical Research in Economics - University of Zurich.
  7. Emin Karagözoglu & Arno Riedl, 2010. "Information, Uncertainty, and Subjective Entitlements in Bargaining," CESifo Working Paper Series 3133, CESifo Group Munich.
  8. Marcos Chamon & Eswar Prasad, 2008. "Why Are Saving Rates of Urban Households in China Rising?," IMF Working Papers 08/145, International Monetary Fund.
  9. Douglas Gollin & Christian Zimmermann, 2010. "Global Climate Change and the Resurgence of Tropical Disease: An Economic Approach," Center for Development Economics 2010-09, Department of Economics, Williams College.
  10. Wu, Jing & Gyourko, Joseph & Deng, Yongheng, 2012. "Evaluating conditions in major Chinese housing markets," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 531-543.
  11. Danziger, Leif, 2010. "Uniform and Nonuniform Staggering of Wage Contracts," IZA Discussion Papers 5023, Institute for the Study of Labor (IZA).
  12. Kotakorpi, Kaisa & Poutvaara, Panu, 2011. "Pay for politicians and candidate selection: An empirical analysis," Munich Reprints in Economics 19489, University of Munich, Department of Economics.
  13. Dorothee Crayen & Christa Hainz & Christiane Ströh de Martinez, 2010. "Remittances, Banking Status and the Usage of Insurance Schemes," CESifo Working Paper Series 3117, CESifo Group Munich.
  14. Christopher D. Carroll & Misuzu Otsuka & Jiri Slacalek, 2011. "How Large Are Housing and Financial Wealth Effects? A New Approach," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(1), pages 55-79, 02.
  15. Grossmann, Volker & Steger, Thomas M. & Trimborn, Timo, 2010. "Quantifying Optimal Growth Policy," IZA Discussion Papers 5007, Institute for the Study of Labor (IZA).
  16. Case, Karl E. & Quigley, John M. & Shiller, Robert J., 2005. "Comparing Wealth Effects: The Stock Market versus the Housing Market," Berkeley Program on Housing and Urban Policy, Working Paper Series qt28d3s92s, Berkeley Program on Housing and Urban Policy.
  17. Michel Beine & Elisabetta Lodigiani & Robert Vermeulen, 2009. "Remittances and Financial Openness," CREA Discussion Paper Series 09-09, Center for Research in Economic Analysis, University of Luxembourg.
  18. Sebastian Kube & Christian Traxler, 2011. "The Interaction of Legal and Social Norm Enforcement," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(5), pages 639-660, October.
  19. Volker Meier & Helmut Rainer, 2010. "On the Optimality of Joint Taxation for Non-Cooperative Couples," CESifo Working Paper Series 3128, CESifo Group Munich.
  20. Thomas Moutos & Christos Tsitsikas, 2010. "Whither Public Interest: The Case of Greece's Public Finances," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 66(2), pages 170-206, June.
  21. Slacalek, Jiri, 2009. "What Drives Personal Consumption? The Role of Housing and Financial Wealth," Working Paper Series 1117, European Central Bank.
  22. Robert S. Chirinko & Daniel J. Wilson, 2010. "Can lower tax rates be bought? Business rent-seeking and tax competition among U.S.States," Working Papers 2010/2, Institut d'Economia de Barcelona (IEB).
  23. Axel Löffler & Gunther Schnabl & Franziska Schobert, 2010. "Inflation Targeting by Debtor Central Banks in Emerging Market Economies," CESifo Working Paper Series 3138, CESifo Group Munich.
  24. Jes�s Fern�ndez-Villaverde & Juan F. Rubio-Ram�rez, 2007. "Estimating Macroeconomic Models: A Likelihood Approach," Review of Economic Studies, Oxford University Press, vol. 74(4), pages 1059-1087.
  25. Vilen Lipatov & Alfons Weichenrieder, 2010. "Optimal Income Taxation with Tax Competition," CESifo Working Paper Series 3108, CESifo Group Munich.
  26. Andrea Filippo Presbitero & Alberto Zazzaro, 2009. "Competition and Relationship Lending: Friends or Foes?," Mo.Fi.R. Working Papers 13, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  27. Tsur, Yacov & Zemel, Amos, 1996. "Accounting for global warming risks: Resource management under event uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 20(6-7), pages 1289-1305.
  28. John Beirne & Guglielmo Maria Caporale & Nicola Spagnolo, 2010. "Liquidity Risk, Credit Risk and the Overnight Interest Rate Spread: A Stochastic Volatility Modelling Approach," CESifo Working Paper Series 3115, CESifo Group Munich.
  29. Momi Dahan & Michel Strawczynski, 2010. "Fiscal Rules and Composition Bias in OECD Countries," CESifo Working Paper Series 3088, CESifo Group Munich.
  30. Azar, Christian & Sterner, Thomas, 1996. "Discounting and distributional considerations in the context of global warming," Ecological Economics, Elsevier, vol. 19(2), pages 169-184, November.
  31. Bernd Hayo & Stefan Voigt, 2010. "Determinants of Constitutional Change: Why Do Countries Change Their Form of Government?," MAGKS Papers on Economics 201006, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  32. Thomas Eichner & Rüdiger Pethig, 2010. "International carbon emissions trading and strategic incentives to subsidize green energy," Volkswirtschaftliche Diskussionsbeiträge 142-10, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
  33. Oprea, Ryan & Henwood, Keith & Friedman, Daniel, 2011. "Separating the Hawks from the Doves: Evidence from continuous time laboratory games," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2206-2225.
  34. Andrzej Baniak & Peter Grajzl, 2010. "Interjurisdictional Linkages and the Scope for Interventionist Legal Harmonization," CESifo Working Paper Series 3085, CESifo Group Munich.
  35. Olaf Posch, 2009. "Risk premia in general equilibrium," CREATES Research Papers 2009-58, School of Economics and Management, University of Aarhus.
  36. Massimo Bordignon & Santino Piazza, 2010. "Who do you Blame in Local Finance? An Analysis of Municipal Financing in Italy," CESifo Working Paper Series 3100, CESifo Group Munich.
  37. Henri Fraisse, 2010. "Labour Disputes and the Game of Legal Representation," CESifo Working Paper Series 3084, CESifo Group Munich.
  38. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
  39. Fratzscher, Marcel & Reynaud, Julien, 2011. "IMF surveillance and financial markets--A political economy analysis," European Journal of Political Economy, Elsevier, vol. 27(3), pages 405-422, September.
  40. Pesaran, M. Hashem & Smith, Ron, 1995. "Estimating long-run relationships from dynamic heterogeneous panels," Journal of Econometrics, Elsevier, vol. 68(1), pages 79-113, July.
  41. Jenny Ligthart & Gerard C. van der Meijden, 2010. "Coordinated Tax-Tariff Reforms, Informality, and Welfare Distribution," CESifo Working Paper Series 3107, CESifo Group Munich.
  42. Pindyck, Robert S., 1998. "Irreversibilities and the timing of environmental policy," Working papers WP 4047-98., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  43. John Boyd & Gianni De Nicolò & Elena Loukoianova, 2010. "Banking Crises and Crisis Dating: Theory and Evidence," CESifo Working Paper Series 3134, CESifo Group Munich.
  44. Weitzman, Martin L., 2009. "On Modeling and Interpreting the Economics of Catastrophic Climate Change," Scholarly Articles 3693423, Harvard University Department of Economics.
  45. Carlo V. Fiorio & Massimo Florio, 2010. "A Fair Price for Energy? Ownership versus Market Opening in the EU15," CESifo Working Paper Series 3124, CESifo Group Munich.
  46. Martin Kolmar & Hendrik Rommeswinkel, 2010. "Group Contests with Complementarities in Efforts," CESifo Working Paper Series 3136, CESifo Group Munich.
  47. Andreas Lehnert, 2004. "Housing, consumption, and credit constraints," Finance and Economics Discussion Series 2004-63, Board of Governors of the Federal Reserve System (U.S.).
  48. Sara Amoroso & Peter M. Kort & Bertrand Melenberg & Joseph Plasmans & Mark Vancauteren, 2010. "Firm Level Productivity under Imperfect Competition in Output and Labor Markets," CESifo Working Paper Series 3082, CESifo Group Munich.
  49. Francesco Daveri & Maria Laura Parisi, 2010. "Experience, innovation and productivity. Empirical evidence from Italy's slowdown," Working Papers 1009, University of Brescia, Department of Economics.
  50. Pindyck, Robert S., 2002. "Optimal timing problems in environmental economics," Journal of Economic Dynamics and Control, Elsevier, vol. 26(9-10), pages 1677-1697, August.
  51. Simon Dietz & Nicholas Stern, 2008. "Why Economic Analysis Supports Strong Action on Climate Change: A Response to the Stern Review's Critics," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 2(1), pages 94-113, Winter.
  52. Simon P. Anderson & Oystein Foros & Hans Jarle Kind, 2010. "Hotelling Competition with Multi-Purchasing: Time Magazine, Newsweek, or both?," CESifo Working Paper Series 3096, CESifo Group Munich.
  53. Wolfgang Buchholz & Wolfgang Peters, 2010. "Equity as a Prerequisite for Stable Cooperation in a Public-Good Economy - The Core Revisited," CESifo Working Paper Series 3113, CESifo Group Munich.
  54. Dan Anderberg & Yu Zhu, 2010. "The Effect of Education on Marital Status and Partner Characteristics: Evidence from the UK," CESifo Working Paper Series 3104, CESifo Group Munich.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ham:qmwops:21007b. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.