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The Impact of Ambiguity Prudence on Insurance and Prevention

Berger, Loic - 2015

under which ambiguity aversion raises the demand for (self-)insurance and self-protection. In particular, it is shown that … in most usual situations where the level of ambiguity does not increase with the level of effort, a simple condition of … ambiguity prudence known as decreasing absolute ambiguity aversion (DAAA) is sufficient to give a clear and positive answer to …

Persistent link: https://www.econbiz.de/10013027367

Pollution Control : When, and How, to Be Precautious

Athanassoglou, Stergios; Xepapadeas, Anastasios - 2014

The precautionary principle (PP) applied to environmental policy stipulates that, in the presence of physical uncertainty, society must take robust preventive action to guard against worst-case outcomes. It follows that the higher the degree of uncertainty, the more aggressive this preventive...

Persistent link: https://www.econbiz.de/10014185483

Ambiguous Aggregation of Expert Opinions : The Case of Optimal R&D Investment

Athanassoglou, Stergios; Bosetti, Valentina; de Maere … - 2014

ambiguity over the aggregation of expert opinion and a decision-maker's attitude towards it. In line with the paper's focus on R …

Persistent link: https://www.econbiz.de/10014041511

On the Economics of Rational Self-Medication

Akpalu, Wisdom - 2008

It has been established in the medical literature that self-medicating with imperfect information about either the use of a genuine or counterfeit drug or based on wrong self-diagnosis of ailment, which is predominant especially in developing countries, is a risky investment in health capital....

Persistent link: https://www.econbiz.de/10014220808

Deforestation Rate in the Long-Run : The Case of Brazil

Di Corato, Luca; Moretto, Michele; Vergalli, Sergio - 2017

In this article we study the long-run average rate of forest conversion in Brazil. Deforestation results from the following trade-off: on the one hand, the uncertain value of benefits associated with forest conservation (biodiversity, carbon sequestration and other ecosystem services), on the...

Persistent link: https://www.econbiz.de/10014125528

Investing in Photovoltaics : Timing, Plant Sizing and Smart Grids Flexibility

Bertolini, Marina - 2017

In Italy and in many EU countries, the last decade was characterized by a large development of distributed generation power plants. Their presence determined new critical issues for the design and management of the overall energy system and the electric grid due to the presence of discontinuous...

Persistent link: https://www.econbiz.de/10012968267

Integrated Assessment of Climate Catastrophes with Endogenous Uncertainty : Does the Risk of Ice Sheet Collapse Justify Precautionary Mitigation?

Diaz, Delavane - 2015

Greenhouse gas policies confront the trade-off between the costs of reducing emissions and the benefits of avoided climate change. The risk of uncertain and potentially irreversible catastrophes is an important issue related to the latter, and one that has not yet been well incorporated into...

Persistent link: https://www.econbiz.de/10013019654

Renewable energy communities, digitalization and information

Bergemann, Dirk; Bertolini, Marina; Castellini, Marta; … - 2022

In this work we study the case of agents willing to engage in a Renewable Energy Community (REC). The municipality – being the promoter of the REC – burdens all the investment costs (RE plants, storage, local grid interventions) and entrusts an aggregator of its operation paying a fixed...

Persistent link: https://www.econbiz.de/10014241087

Land Conversion Pace Under Uncertainty and Irreversibility : Too Fast or Too Slow?

Di Corato, Luca - 2012

In this paper stochastic dynamic programming is used to investigate land conversion decisions taken by a multitude of landholders under uncertainty about the value of environmental services and irreversible development. We study land conversion under competition on the market for agricultural...

Persistent link: https://www.econbiz.de/10013112141

Uncertainty in Integrated Assessment Models of Climate Change : Alternative Analytical Approaches

Golub, Alexander - 2011

Uncertainty plays a key role in the economics of climate change, and the discussions surrounding its implications for climate policy are far from settled. We give an overview of the literature on uncertainty in integrated assessment models of climate change and identify some future research...

Persistent link: https://www.econbiz.de/10013130410