Valid ESG-Investing Dumps shared by ExamDiscuss.com for Helping Passing ESG-Investing Exam! ExamDiscuss.com now offer the newest ESG-Investing exam dumps, the ExamDiscuss.com ESG-Investing exam questions have been updated and answers have been corrected get the newest ExamDiscuss.com ESG-Investing dumps with Test Engine here:
Which of the following best describes Weitzman's dismal theorem?
Correct Answer: C
Weitzman'sdismal theoremsuggests that traditionalcost-benefit analysis failsto accurately measure the downside risks of climate change because ofuncertainty in extreme tail events. It argues thatlow-probability, high-impact events (e.g., catastrophic global warming)candominate economic risk calculations, making itdifficult to justify inactionbased on expected cost assessments alone. This theorem challenges standard economic models thatdiscount future risks too heavily, advocating forprecautionary climate policieseven in cases ofuncertain probability distributions. References: * Weitzman, M. L. (2009). "On Modeling and Interpreting the Economics of Catastrophic Climate Change" * IPCC Climate Risk Frameworks * Nicholas Stern Review on Climate Economics ========