Mathematical programming models are widely used in agricultural sector analysis. Lack of micro-level data and computational reasons necessitate aggregation of individual producers into regional representative units when working at sectoral level. This usually leads to unrealistic and extreme...

We develop a simple model of managing a system subject to pollution damage under risk of an abrupt and random jump in the damage coefficient. The model allows the full dynamic characterization of the optimal emission policies under uncertainty. The results, that imply prudent behavior due to...