Environmental policy and convexity of climate change damage functions: an experiment with New Keynesian DSGE model

Economic and financial consequences of water risks: The case of hydropower

“…Climate-related physical risks -e.g. the increased likelihood of adverse weather events due to climate change -have already been identified as a potential source of economic losses and financial instability (Battiston et al, 2021;Campiglio et al, 2022;Bressan et al, 2022) and several attempts have been made to estimate appropriate damage functions (Nordhaus, 1993;Botzen and van den Bergh, 2012;Diaz and Moore, 2017;Bretschger and Pattakou, 2019;Neumann et al, 2020;Franzke, 2021;Dunyo, 2022;Russell et al, 2022). Moreover, empirical estimates of the economic costs from natural disasters have became increasingly available (Hornbeck, 2012;Parker, 2018;Botzen et al, 2019;Coronese et al, 2019) and studies have emerged on the costs from environmental degradation (Johnson et al, 2021).…”