Pricing ambiguity in catastrophe risk insurance

Working paper by Simon Dietz, Falk Niehörster on 23 May 2019

The authors of this paper apply a newly developed insurance pricing model to two catastrophe model data sets relating to hurricane risk in two locations in the Atlantic basin, estimating ambiguity loads – the extra insurance premium due to ambiguity – and showing how these depend on the insurer’s attitude to ambiguity. read more »

Linking permit markets multilaterally

Working paper by Baran Doda, Simon Quemin, Luca Taschini on 27 Feb 2019

A patchwork of emissions trading systems (ETSs) currently operate in several jurisdictions, including the EU, Switzerland, South Korea and several US states and Canadian provinces. China has also been experimenting with emissions trading in seven provinces and cities and is setting up a national system that will be much larger than the current largest system, […]

Adding fuel to fire? Social spillovers and spatial disparities in the adoption of LPG in India

Working paper by Suchita Srinivasan, Stefano Carattini on 8 Feb 2019

This paper investigates the role of ‘social spillovers’ – people learning from and imitating the behaviour of other people – in the adoption of new technologies, with a focus on liquefied petroleum gas (LPG) in India. The conclusions are important for policymakers seeking to hasten the switch to cleaner energy sources in developing countries. read more »

Steering the climate system: an extended comment

Working paper by Linus Mattauch, Richard Millar, Frederick van der Ploeg, Armon Rezai, Anselm Schultes, Frank Venmans, Nico Bauer, Simon Dietz, Ottmar Edenhofer, Niall Farrell, Cameron Hepburn, Gunnar Luderer, Jacquelyn Pless, Fiona Spuler, Nicholas Stern, Alexander Teytelboym on 4 Jan 2019

The authors of this comment respond to a recent argument put forward by Lemoine and Rudik (2017), that it is efficient to delay reducing carbon emissions because there is substantial inertia in the climate system. Mattauch et al. show that there is no such inertia, which means there is no lag between carbon emissions and warming. read more »

Pigou pushes preferences: decarbonisation and endogenous values

Working paper by Linus Mattauch, Cameron Hepburn, Nicholas Stern on 17 Dec 2018

This paper explores the relationship between carbon prices and policies that change consumers’ preferences, concluding that taking the effects into account in economic models would enhance understanding of climate change mitigation policy, facilitating the transition to a low-carbon economy. read more »