This paper examines the impact of Knightian uncertainty upon optimal climate policy through the prism of a continuous … Knightian uncertainty accelerates climate policy, i.e. policymakers become more reluctant to postpone the timing of climate …

Model uncertainty is inherent in the design of optimal environmental policy. We investigate the consequences in a …

We study a two-stage R&D project with an abandonment option. Two types of uncertainty influence the decision to start R …&D. Demand uncertainty is modelled as a lottery between a proportional increase and decrease in demand. Technical uncertainty is … modelled as a lottery between a decrease and increase in the cost to continue R&D. We relate differences in uncertainty to …

their risk aversion parameter invest less in risky assets than wealthy investors with identical risk aversion uncertainty. …

We study the importance of uncertainty and public finance to the welfare ranking of three environmental policy … revenues finance public abatement. When the main source of uncertainty is economic, the most efficient recipe is to levy … pollution taxes and use the collected tax revenues to finance public abatement. However, when environmental uncertainty is the …

This paper demonstrates that well-established biases in decision making under uncertainty can generate poverty traps. A …

In criminal cases the task of the judge is to transform the uncertainty about the facts into the certainty of the …