Mitigation deterrence and the “moral hazard” of solar radiation management

Simple Models of Operating Moral Hazard and Investing Moral Hazard

In this paper, we depict and analyze simple models of moral hazard, namely “operating moral hazard” and “investing moral hazard.” First we assume that a corporation exists primarily for the benefit of their shareholders. Then, moral hazard occurs when managers choose an option knowingly that is not optimum for shareholders. We evaluate the loss to shareholders in terms of cash flow to them in t...

MORAl HAzARD, DISCIPlInE, AnD THE MAnAgEMEnT Of TERRORIST ORgAnIzATIOnS

f the mid-1990s through 2001 two of the West’s most implacable terrorist foes, Abu Hafs al-Masri and Abu Khabab, carried on what appears to have been a long-running feud within al-Qaeda, a feud that came to an end only when Abu Hafs al-Masri was killed by the U.S. military. Abu Hafs joined al-Qaeda early on and served as the group’s military commander from 1996 onward. Abu Khabab was a member o...

Moral Hazard in Dynamic Risk Management

We consider a contracting problem in which a principal hires an agent to manage a risky project. When the agent chooses volatility components of the output process and the principal observes the output continuously, the principal can compute the quadratic variation of the output, but not the individual components. This leads to moral hazard with respect to the risk choices of the agent. To find...

Ethics and Geoengineering: Reviewing the Moral Issues Raised by Solar Radiation Management and Carbon Dioxide Removal

Moral Hazard and Observability

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