Stochastics of Environmental and Financial Economics.

Summary These Proceedings offer a selection of peer-reviewed research and survey papers by some of the foremost international researchers in the fields of finance, energy, stochastics and risk, who present their latest findings on topical problems. The papers\ua0cover the areas\ua0of\ua0stochastic modeling\ua0in energy and financial markets.\ua0risk management with environmental factors from a stochastic control perspective. and\ua0valuation and hedging of derivatives\ua0in markets dominated by renewables, all of which further develop the theory of stochastic analysis and mathematical finance. The papers were presented at the first conference on "Stochastics of Environmental and Financial Economics (SEFE)", being\ua0part of the activity in the SEFE research group of\ua0the Centre of Advanced Study (CAS)\ua0at the Academy of Sciences in Oslo, Norway during the 2014/2015 academic year.