Daniel, K.; et al. (2019): Declining CO2 price paths

Daniel, Kent D.; Litterman, Robert B.; Wagner, Gernot (2019): Declining CO2 price paths. In: PNAS, S. 201817444. DOI: 10.1073/pnas.1817444116.

“Risk and uncertainty are important in pricing climate damages. Despite a burgeoning literature, attempts to marry insights from asset pricing with climate economics have largely failed to supplement—let alone supplant—decades-old climate–economy models, largely due to their analytic and computational complexity. Here, we introduce a simple, modular framework that identifies core trade-offs, highlights the sensitivity of results to key inputs, and helps pinpoint areas for further work.”