Caron, Justin; Ohndorf, Markus - Institute for Environmental Decisions (IED), … - 2010
sources of irreversibility or inertia. The pertinence of Real Option Theory in understanding the optimal amount of necessary … precautionary behavior is explored, as are the results from modeling exercises. Generally, it appears that irreversibility … understand the intuition behind Real Option theory - the interplay between irreversibility and uncertainty. Many climate …