Environmental Risk and Uncertainty

摘要: Abstract Environmental risks may comprise the most important policy-related application of economics risk and uncertainty. Many biases in assessment regulation, such as conservatism bias stringent regulation synthetic chemicals, reflect a form ambiguity aversion. Nevertheless, there is evidence that people can learn from warnings information, Toxics Release Inventory data, consistent with Bayesian models. The fundamental uncertainties respect to environmental are coupled irreversibilities, making sequential decisions adaptive behavior desirable. Uncertainties over benefits costs mitigating pose challenges for any regulator, but insights drawn instrument choice literature inform design implementation welfare-maximizing pollution control policies. problem climate change motivates series illustrations how uncertainty affects policy.