Ambiguity and climate policy
Working paper by Antony Millner, Simon Dietz, Geoffrey Heal on 1 Dec 2010
Also known as Munich Re Technical Paper 4. Economic evaluation of climate policy traditionally treats uncertainty by appealing to expected utility theory. Yet our knowledge of the impacts of climate policy may not be of sufficient quality to justify probabilistic beliefs. In such circumstances, it has been argued that the axioms of expected utility theory […]