Category: Theory

Winner of the 2010 E.ON Prize: "Additive Damages, Fat-Tailed Climate Dynamics, and Uncertain Discounting" by Martin Weitzman

The winner of the 5,000 euro 2010 E.ON Prize for the most outstanding journal article in the field of energy and environment published in the e-journal is Martin Weitzman for "Additive Damages, Fat-Tailed Climate Dynamics, and Uncertain Discounting".… more »

GHG Targets as Insurance Against Catastrophic Climate Damages

Abstract: A critical issue in climate-change economics is the specification of the so-called "damages function" and its interaction with the unknown uncertainty of catastrophic outcomes. This paper asks how much we might be misled by our economic assessm… more »

The value of a statistical life under ambiguity aversion

Abstract: The paper shows that ambiguity aversion increases the value of a statistical life if the marginal utility of an increase in wealth is larger if one is alive rather than dead. Intuitively, ambiguity aversion has a similar effect as an increase i… more »

The ecological importance of species and the Noah's Ark problem

Abstract: Using the Noah's Ark problem – the problem of efficiently allocating limited funds to conserve biodiversity – the standard economic approach to endangered species conservation constructs a human-centered biodiversity by favoring species directl… more »