The paper proposes a novel way to handle the relation between decision theory and uncertainty in the context of policy … design. Present risk governance is based primarily on two institutions - insurance markets and public risk governance … - supported by a powerful theory: the expected utility approach to risk. New systemic risks like those of nuclear war, pandemics …

We introduce a “smart” cap and trade system that eliminates the welfare costs of asymmetric information (“uncertainty …

technological uncertainty favors taxes over cap and trade. Weitzman models a flow pollutant, but greenhouse gases are persistent …

a self-financing policy (based on convex risk measures) is proposed and implemented. …

public risk governance - supported by a powerful theory: the expected utility approach to risk. Expected utility refines the … distributions, using subjective probabilities where required. One might think that future progress in risk research will consist … conventional risk management and call for new forms of integrated risk governance. Greater progress is possible because recent …

, where agents face a strong uncertainty about expected payoffs from bilateral interactions. We propose a simple model where …