In this paper, the authors provide a theoretical review of option value and its relationship to a more familiar concept in decision analysis, the value of information. They further show how option value might be measured with the aid of a partly realistic and partly hypothetical example. The...

Earlier work on environmental decisions under uncertainty is extended from two periods to many, permitting treatment of a richer variety of problems. Implications for pollution control policy of several different kinds of ecosystem recovery dynamics are considered in the context of improving...