In their article "An Arbitrage-Free Approach to Quasi-Option Value" [J.Environm. Econom. Management 35, 103-125, 1998], Coggins and Ramezani interpreted the concept of quasi-option value introduced by Arrow and Fisher [Quart. J. Econom. 88, 1974, 312-319] as being identical to Dixit and...

In the presence of uncertainty and irreversibility, dynamic decision problems should not be solved using expected net present value analysis. The right to delay a decision can be valuable. We show that the value of this right equals Arrow and Fisher's [K. J. Arrow and A. C. Fisher, Environmental...

In the presence of uncertainty and irreversibility, dynamic decision problems should not be solved using expected net present value analysis. The right to delay a decision can be valuable. We show that the value of this right equals Arrow and Fishers (1974) quasi-option value. In a discrete...

Little theoretical work has been done previously on the welfare valuation of changes in price and quality when consumers are imperfectly informed. The presence of imperfect information is particularly important in the analysis of averting behaviors. We develop a theoretical welfare measure,...

Conventional measures of gross domestic product (GDP) fail to account for the effect of economic activity on the environment. Integrated environmental-economic (or 'green') GDP is calculated using a data-envelopment-analysis (DEA) framework. For this purpose a dynamic cross-country technology is...

The paper provides a methodology that is feasibly implemented for integrated environmental-economic (or 'green') GDP accounting and productivity measurement. The shadow prices for environmental inputs, which enable us to calculate green GDP and to design a pollution tax scheme and tradable...