Environmental Policy Choice under Uncertainty

Environmental Policy Aid Under Uncertainty

The precautionary principle in environmental policy and the theory of choice under uncertainty

The precautionary principle, presented as a guide to environmental policy decisions in the presence of uncertainty, has been the subject of vigorous debate. However, the has generally not been discussed in relation to formal theories of choice under uncertainty developed as generalizations of the expected utility model. In this paper, it is argued that a formal basis for the precautionary princ...

Regime Shifts, Environmental Signals, Uncertainty, and Policy Choice

Education Choice under Uncertainty : Implications for Public Policy ∗

We analyse how progressive taxation and education subsidies affect schooling decisions when the returns to education are stochastic. We use the theory of real options to solve the problem of education choice in a dynamic stochastic model. We show that education attainment will be an increasing function of the risk associated with education. Furthermore, this result holds regardless of the degre...

Decomposable Choice under Uncertainty

Savage motivated his sure thing principle by arguing that, whenever an act would be preferred if an event obtains and preferred if that event did not obtain, it should be preferred overall. The ability to decompose and recompose decision problems in this way has normative appeal. It does not, however, require the full separability embodied in Savage's axiom. We formulate a weaker axiom that suf...