Novel and improved insurance instruments for risk reduction

Working paper by Swenja Surminski, Florence Crick, Jillian Eldridge, Paul Hudson, Jeroen Aerts, Wouter Botzen, Jaroslav Mysiak, Carlos Dionisio Pérez-Blanco, Francisco Rego, Robin Nicolai, Carlos Neto, Reinhard Mechler, António Macedo, Anna Lorant, Conceição Colaço on 30 Mar 2015

In the context of natural disaster insurance and risk reduction this paper looks at how to assess existing insurance offerings and how to design new schemes. read more »

Endogenous growth, convexity of damages and climate risk: how Nordhaus’ framework supports deep cuts in carbon emissions

Research article by Simon Dietz, Nicholas Stern on 23 Mar 2015

‘To slow or not to slow’ (Nordhaus, 1991) was the first economic appraisal of greenhouse gas emissions abatement and founded a large literature on a topic of worldwide importance. We offer our assessment of the original article and trace its legacy, in particular Nordhaus’s later series of ‘DICE’ models. From this work, many have drawn the conclusion that an efficient global emissions abatement policy comprises modest and modestly increasing controls. We use DICE itself to provide an initial illustration that, if the analysis is extended to take more strongly into account three essential elements of the climate problem – the endogeneity of growth, the convexity of damage and climate risk – optimal policy comprises strong controls. read more »