Athanassoglou, Stergios; Xepapadeas, Anastasios - Fondazione ENI Enrico Mattei (FEEM) - 2011
uncertainty, society must take robust preventive action to guard against worst-case outcomes. It follows that the higher the … degree of uncertainty, the more aggressive this preventive action should be. This normative maxim is explored in the case of … a stylized dynamic model of pollution control under Knightian uncertainty. At time 0 a decision-maker makes a one …