The sources of preference uncertainty in contingent valuation (CV) studies have rarely been investigated from a theoretical standpoint. This paper proposes a holistic theoretical framework of preference uncertainty that combines microeconomic theory with the theories of cognitive psychology....

The study aims to reveal Australian households’ perceptions of climate change and their preferences for climate change mitigation actions. A web-based survey was conducted in November 2008 in which about 600 New South Wales households were asked for their willingness to bear extra household...

This report proposes an extension to existing models of non-expected utility (NEU) in the stated preference (SP) literature. The extension incorporates the impact of multiple sources of ambiguity in individual decision making behaviour. Empirical testing of the proposed decision model was...

This study aims to show how Australian households perceive climate change and what they are prepared to do to reduce the harmful effects of climate change. A web-based survey in November 2008 asked approximately 600 New South Wales households about their willingness to pay additional household...

The numerical certainty scale (NCS) and polychotomous choice (PC) methods are two widely used techniques for measuring preference uncertainty in contingent valuation (CV) studies. The NCS follows a numerical scale and the PC is based on a verbal scale. This report presents results of two...

The Murray Darling Basin Current is currently in drought. There are low water levels in most dams, and increased uncertainty about future rainfall. As a result management of the ecosystems in the basin that depend on river flows involves some hard decisions about what assets to save and what...

One approach to rationalising policies for addressing potentially catastrophic climate change when such policies may prove unnecessary is to suppose the policies provide a form of social insurance even in the presence of pure uncertainty. Then, provided the policies are effective, such insurance...

Australian crop and livestock farmers face uncertain climate change and variability and a challenge for adaptation decisions. These decisions can be (1) adjustments to practices and technologies, (2) changes to production systems, or (3) transformation of industries, for example, by relocation...

The emission of greenhouse gases, particularly carbon dioxide, and the consequent potential for climate change are the focus of increasing international concern. Eventually, an international agreement will likely be enacted to reduce greenhouse gas emission levels and assign rules for emission...

Economic evaluation of climate policy is notoriously dependent on assumptions about time and risk preferences, since reducing greenhouse gas emissions today has a highly uncertain payoff, far into the future. These assumptions have always been much debated. Rather than occupy a position in this...