Global Warming and a Potential Tipping Point in the Atlantic Thermohaline Circulation: The Role of Risk Aversion

@article{Belaia2014GlobalWA,
  title={Global Warming and a Potential Tipping Point in the Atlantic Thermohaline Circulation: The Role of Risk Aversion},
  author={Mariia Belaia and Michael Funke and Nicole Glanemann},
  journal={Environmental and Resource Economics},
  year={2014},
  volume={67},
  pages={93-125}
}
The risk of catastrophes is one of the greatest threats of climate change. Yet, conventional assumptions shared by many integrated assessment models such as DICE lead to the counterintuitive result that higher concern about climate change risks does not lead to stronger near-term abatement efforts. This paper examines whether this result still holds in a refined DICE model that employs the Epstein–Zin utility specification and that is fully coupled with a dynamic tipping point model describing… Expand
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