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Mitigating disaster risks caused by carbon emissions

Author

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  • Meng, Weizhen
  • Li, Shilin
  • Yang, Jinqiang

Abstract

This paper presents a dynamic mitigation policy model incorporating the carbon cycle. As carbon stocks increase, mitigation spending increases. However, frequent disasters erode agents’ mitigation confidence, reducing mitigation spending and increasing consumption. The social costs of carbon and risk premiums follow a similar trend, changing with carbon stocks.

Suggested Citation

  • Meng, Weizhen & Li, Shilin & Yang, Jinqiang, 2024. "Mitigating disaster risks caused by carbon emissions," Economics Letters, Elsevier, vol. 241(C).
    • Handle: RePEc:eee:ecolet:v:241:y:2024:i:c:s016517652400301x
    DOI: 10.1016/j.econlet.2024.111817
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    References listed on IDEAS

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    More about this item

    Keywords

    Carbon emissions; Catastrophes; Asset prices; Climate policy;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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