We investigate the optimal policy response to the possibility of abrupt, irreversible shifts in
system dynamics. The welfare cost of a tipping point emerges from the policymaker's …

Currently, groundwater resources are under anthropogenic and natural pressures.
Depending on various factors, aquifers have diverse responses toward stresses. Resilience …

We analyze how the threat of a potential future regime shift affects optimal management. We
use a simple general growth model to analyze four cases that involve combinations of stock …

This literature overview conducts a systematic study of how the climate related risks from
global warming may affect financial markets. The climate related risk is divided into three …

We analyze the policy implications of aversion to Knightian uncertainty (ambiguity) about the
possibility of tipping points. We demonstrate two channels through which uncertainty …

We develop a simple model of managing a system subject to pollution damage, such as
climate change, under the risk of an abrupt and random jump in the damage function. The …

We study optimal climate policy in the presence of climate tipping points and solar
geoengineering. Solar geoengineering reduces temperatures without reducing greenhouse …

Abstract Melting of the Antarctic Ice Sheet (AIS) could contribute metres to global sea level
rise (SLR) in the long run. We couple models of AIS melting due to rising temperatures, SLR …

Optimal climate policy should act in a precautionary fashion to deal with tipping points that
occur at some future random moment. The optimal carbon tax should include an additional …

This paper provides an interpretive overview on the economics of resilience with special
reference to social–ecological systems. We address the basic sciences of regime shifts and …