?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F18720%2F&rft.title=The+climate+beta&rft.creator=Dietz%2C+Simon&rft.creator=Gollier%2C+Christian&rft.creator=Kessler%2C+Louise&rft.subject=B-+ECONOMIE+ET+FINANCE&rft.description=Mitigation+reduces+the+expected+future+damages+from+climate+change%2Cflbut+how+does+it+affect+the+aggregate+risk+borne+by+future+generations%3FflThis+raises+the+question+of+the+%E2%80%98climate+beta%E2%80%99%2C+i.e.%2C+the+elasticity+of+climatefldamages+with+respect+to+a+change+in+aggregate+consumption.+Inflthis+paper+we+show+that+the+climate+beta+is+positive+if+the+main+sourceflof+uncertainty+is+exogenous%2C+emissions-neutral+technological+progress%2Cflimplying+that+mitigation+has+no+hedging+value.+But+these+results+areflreversed+if+the+main+source+of+uncertainty+is+related+to+the+carbonclimate-flresponse+and+the+damage+intensity+of+warming.+We+then+showflthat+in+the+DICE+integrated+assessment+model+the+climate+beta+is+positivefland+close+to+unity.+In+estimating+the+social+cost+of+carbon%2C+thisflwould+justify+using+a+relatively+high+rate+to+discount+expected+climatefldamages.+However%2C+the+stream+of+undiscounted+expected+climate+damagesflis+also+increasing+in+the+climate+beta.+We+show+that+this+dominatesflthe+discounting+effect%2C+so+that+the+social+cost+of+carbon+is+in+fact+largerflthan+when+discounting+expected+damages+at+the+risk-free+rate.&rft.publisher=TSE+Working+Paper&rft.date=2015-11&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F18720%2F1%2Fclimate_beta_november.pdf&rft.identifier=++Dietz%2C+Simon+%3Chttps%3A%2F%2Fwww.idref.fr%2F120011441%3E%2C+Gollier%2C+Christian+%3Chttps%3A%2F%2Fwww.idref.fr%2F03126123X%3E+and+Kessler%2C+Louise++(2015)+The+climate+beta.++TSE+Working+Paper%2C+n.+15-608+++++&rft.relation=http%3A%2F%2Ftse-fr.eu%2Fpub%2F29904&rft.language=en