Taleb & Climate Change - https://docs.google.com/file/d/0B8nhAlfIk3QIUUthSzJqUnRPbDg/edit
9 CLIMATE CHANGE AND FRAGILITY POLICY
9.1 Skepticism and Precaution
What is missed by the discussion of "skepticism" is that its impact on decisions should lead to increased, not decreased conservatism in the presence of ruin. As we show intuitively in Figure 6 and mathematically in Appendix C, more skepticism about models implies more uncertainty about the tails, which necessitates more precaution about newly implemented techniques, or larger size of exposures. Nature might not be smart, but it has thinner left tail.
9 CLIMATE CHANGE AND FRAGILITY POLICY
9.1 Skepticism and Precaution
What is missed by the discussion of "skepticism" is that its impact on decisions should lead to increased, not decreased conservatism in the presence of ruin. As we show intuitively in Figure 6 and mathematically in Appendix C, more skepticism about models implies more uncertainty about the tails, which necessitates more precaution about newly implemented techniques, or larger size of exposures. Nature might not be smart, but it has thinner left tail.
