Researchers using stated preference (SP) techniques have increasingly come to rely on what we call “hypothetical baselines.” By this we mean that respondents are provided with a description of a current state, or baseline, but that this baseline is intentionally not the actual state of...

This article develops a “real options” approach for planning new water resources infrastructure investments and their operating strategies in a world of climate change uncertainty. The approach is illustrated with an example: investments in large new multipurpose dam alternatives along the...