Geological-mining projects are usually associated with relatively high risk and uncertainty in many aspects, including geological, mining, ecologic, economic, market, legal and social conditions. A mineral deposit is an underground natural resource and hence it is difficult to unequivocally...

Vagueness attitudes have been used to explain anomalies and irregularities in investment behavior. It is generally assumed (Ellsberg 1961) that decision makers (DMs) dislike vagueness, but this assumption has been challenged by empirical results documenting systematic alternative attitudes to...

We review long-term electric utility plans representing ~90% of generation within the Western U.S. and Canadian provinces. We address what utility planners assume about future growth of electricity demand and supply; what types of risk they consider in their long-term resource planning; and the...

The survey primarily seeks to expose the literature, presumably in a well-organized framework. There is no attempt to present any new analyses; only the chapter that lays out the potential scope for the presence of risk in schooling decisions contains some data specifically collected and...

The paper discusses synthetically an epistemological question in the field of economics: how to translate a real problem into formal terms without a substantial loss of significance for its solution in policy making. The discussion will challenge the plausibility of the basic assumption of...

Aumann–Serrano (J Polit Econ 116:810–836, <CitationRef CitationID="CR6">2008</CitationRef>) and Foster–Hart (J Polit Econ 117:785–814, <CitationRef CitationID="CR15">2009</CitationRef>) suggest two new riskiness measures, each of which enables one to elicit a complete and objective ranking of gambles according to their riskiness. These riskiness measures were created with a...</citationref></citationref>

Climate change is expected to increase the frequency and intensity of natural disasters. Adaptation investments are required in order to limit the projected increase in natural disaster risks. Adaptation measures can reduce risk partially or completely eliminate risk. The literature on...

Climate policy choices are influenced by the economics literature which analyses the costs and benefits of alternative strategies for climate action. This literature, in turn, rests on a series of choices about: the values and assumptions underlying the economic analysis; the methodologies for...

This paper deals with the optimal reinsurance problem if both insurer and reinsurer are facing risk and uncertainty, though the classical uncertainty free case is also included. The insurer and reinsurer degrees of uncertainty do not have to be identical. The decision variable is not the...

As growing attention is paid to climate change adaptation as an actual policy issue, the significant meaning of climate variability in adaptation decisions is beginning to be recognized. By using a real option framework for adaptation in agricultural production, we shed light on how climate...