We consider the effect of an increase in the risk from pollution. We show that in the case of a flow pollution, when … the number of players is sufficiently large, the result of Bramoulle and Treich, showing that a marginal increase of risk … in the neighborhood of a risk-free world is welfare-improving, holds even when we consider non-marginal increases in risk …

-contingent consumer's surplus and the state-contingent marginal utility of wealth and a second term representing risk aversion. This … consumer's surplus is determined by the covariance between preferences and consumer's surplus and risk aversion. The sign of …. We then apply this result to the allocation of risk in the context of both public and private goods. In Section 3, we …

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 …

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 …

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

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