18-10 (Geneva: Swiss Finance Institute, January 10, 2018), https://www.sfi.ch/en/publications/n-18-10-being-stranded-withfossil-fuel-reserves-climate-policy-risk-and-the-pricing-of-bank-loans-s.-ongena-m.-d.-delis-and-k.-d.greiff-2018.. 16 See Yongyang Cai and Thomas S. Lontzek, “The Social Cost of Carbon with Economic and Climate Risks,” Journal of Political Economy (September 2019), Vol. 127, No. 6, https://www.journals.uchicago.edu/doi/pdf/10.1086/701890.
“The integrated assessment models (IAM) literature has recently studied the importance of climate tipping points, which refer to ‘a critical threshold at which a tiny perturbation can qualitatively alter the state or development of [the climate] system,’ and tipping elements, which are defined as ‘large-scale components of the Earth system that may pass a tipping point’ (both definitions from Lenton et al. 2008, 1786).