High impact , low probability ? An empirical analysis of risk in the economics of climate change

@inproceedings{Dietz2009HighI,
  title={High impact , low probability ? An empirical analysis of risk in the economics of climate change},
  author={Simon Dietz},
  year={2009}
}
To what extent does economic analysis of climate change depend on low-probability, high-impact events? This question has received a great deal of attention lately, with the contention increasingly made that climate damage could be so large that societal willingness to pay to avoid extreme outcomes should overwhelm other seemingly important assumptions, notably on time preference. This paper provides an empirical examination of some key theoretical points, using a probabilistic integrated… CONTINUE READING