Scientific progress offers tremendous potential benefits to society but also presents risks. While research focuses on how to manifest the benefits of any new technology, the outside community fears the consequences that technology may inadvertently have on social goods such as the environment,...

In this paper, authors explore the effects of uncertainty on pricing of pollution permits, through the use of a dynamic model of pollution markets. Authors consider two major sources of uncertainty - that arising from the volatility of demand for the underlying resource and that coming from the...

In this paper authors present a preliminary approach to the evaluation of policies and projects based on current thinking on cost benefit analysis and real option methodology and the authors' recent work on the same subject. Authors start from the assumption that economic agents undertake...