Abstract
We study intertemporal policies for dealing with multiple catastrophic threats with endogenous hazards, allowing, inter alia, for gradual mitigation efforts that accumulate to reduce occurrence risks. The long-run properties of the optimal policies are characterized in terms of the key parameters (damage, hazard sensitivity and natural degradation rate) associated with each type of catastrophic threat. Effects of background threats on the optimal response to a potential catastrophe are illustrated numerically.
Original language | English |
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Pages (from-to) | 175-196 |
Number of pages | 22 |
Journal | Environmental and Resource Economics |
Volume | 68 |
Issue number | 1 |
DOIs | |
State | Published - 1 Sep 2017 |
Bibliographical note
Publisher Copyright:© 2017, Springer Science+Business Media Dordrecht.
Keywords
- Endogenous hazards
- Intertemporal policy
- Long-run properties
- Multiple catastrophes