We develop a simple model of managing a system subject to pollution damage under risk of an abrupt and random jump in the damage coefficient. The model allows the full dynamic characterization of the optimal emission policies under uncertainty. The results, that imply prudent behavior due to...

1. A reconsideration of environmental federalism / Wallace E. Oates -- 2. Global environmental governance, political lobbying and transboundary pollution / Surjinder Johal and Alistair Ulph -- 3. Endogenous transfrontier pollution / Michael Rauscher -- 4. Allocating greenhouse gas emissions...