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Moral hazard

Moral hazard refers to a situation where one party decides on how much risk to take, while it is up to the other party to bear the costs of the risk. This occurs when the risk-taking party has more information about its intentions than the other party (=information asymmetry).

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The Climate Policy Info Hub has been created within the POLIMP project which has received funding from the European Union's Seventh Framework Programme for Research, Technological Development and Demonstration under Grant Agreement Number 603847.

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