This paper analyses the formation of international environmental agreements (IEAs) under uncertainty, focusing on the … role of learning and risk aversion. It bridges two strands of literature: one focused on the role learning for the success … of IEA formation when countries are risk neutral and another that explores the implications of uncertainty and risk …

This paper analyses the formation of international environmental agreements (IEAs) under uncertainty, focusing on the … role of learning and risk aversion. It bridges two strands of literature: one focused on the role learning for the success … of IEA formation when countries are risk neutral and another that explores the implications of uncertainty and risk …

. Information provision is preferable when uncertainty is high, as information is more valuable at this time. …

and treated as a random variable by policy makers. The main purpose is to analyze how additional uncertainty about this …

economics, uncertainty, and decision-making. 1. Economic investments that lead to environmental damages beyond repair - like … uncertain pay-offs. In the context of irreversible investments under uncertainty two different concepts of option value were … potential future learning about the social profitability of the investment. These are the concept of quasi-option value (value …

. We find that price sensitivity and its interplay with uncertainty have important implications for the effects of tolling … uncertainty, but it lowers welfare with uncertain capacity. Next, "third-best" tolling adds the further constraint that, besides a …-best one-raise the price compared to the no-toll case. In our numerical study, when there is less uncertainty, the second …

We introduce uncertainty and risk aversion to the study of international environmental agreements. We consider a simple … uncertainty lowers the actions of signatories, we find that it may increase participation. In addition, uncertainty may generate … participation. Overall, and despite risk aversion, the impact of uncertainty on welfare may be positive. A reduction in uncertainty …