ABSTRACT
A core message of the science of climate change is that climate outcomes are uncertain — and the range of possibilities includes very serious threats to human society and existing natural ecosystems. The Stern Review (Stern 2006) took a step forward in recognizing the significance of this deep uncertainty and calling for its incorporation into economics, as described in Chapter 5. Since Stern, there has been an ever-expanding exploration of the economics of climate uncertainty, which is the subject of this chapter. Even in analyses that lead to moderate rates of abatement, the results may be driven more by uncertainty than by expected outcomes (Pindyck 2012).
