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How important are uncertainty and dynamics for environmental and climate policy? Some analytics
Institution:1. University Paris 1, Paris School of Economics, France;2. Tilburg Sustainability Centre, Tilburg University, Netherlands;1. Department of Economics, University of Hagen, Universitätsstr. 41, 58097 Hagen, Germany;2. Department of Economics, University of Siegen, Unteres Schloss 3, 57072 Siegen, Germany;1. University of Alaska Anchorage, 3211 Providence Drive, Anchorage AK, 99501, United States;2. Yale School of Forestry & Environmental Studies, 120 Kroon Hall, New Haven CT, 06510, United States;3. McGill University, 805 Sherbrooke St West, Canada;1. National Oceanic and Atmospheric and Administration, National Marine Fisheries Service, Southwest Fisheries Science Center, 8901 La Jolla Shores Drive, La Jolla, CA 92037, USA;2. Department of Sociology, Environmental and Business Economics, Centre for Fisheries & Aquaculture Management & Economics (FAME), University of Southern Denmark, Denmark
Abstract:We introduce ten papers on sustainable resource dynamics. In addition, we provide analytical results on the effect of stochastic damages on optimal economic growth, the effects of habits and loss aversion on the cost-benefit discount rate, and the effect of a carbon budget and carbon capture and storage (CCS) on optimal investment in technical change.
Keywords:Stochastic damages  Abatement  Innovation  Optimal growth  Discounting  Habits  Loss aversion  Carbon budget  Carbon capture and storage
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