This article provides a response to the opponents of monetization of risk and environmental benefits, such as the authors of "Priceless: On Knowing the Price of Everything and the Value of Nothing." Putting benefit values in dollar terms ensures that there will be full recognition of these...

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...