Uncertainty has an almost negligible impact on project value in the economic standard model. I show that a comprehensive evaluation of uncertainty and uncertainty attitude changes this picture fundamentally. The analysis relies on the discount rate, which is the crucial determinant in balancing...

The paper develops an axiomatic framework for rational decision making. The von Neumann-Morgenstern axioms give rise to a richer risk attitude than that captured in the standard discounted expected utility model. I derive three models that permit a more comprehensive risk evaluation. These...

The present work is dedicated to theoretical aspects of long-term evaluation with a focus on time and uncertainty structure. Motivated along the lines of global warming, the analysis renders contributions to the fields of environmental economics, decision theory, the economics of sustainability...

Die Arbeit beschäftigt sich mit einer axiomatischen Charakterisierung von Wahlfreiheit. Im ersten Teil analysiere ich im statischen Kontext bestehende Axiomensysteme und erarbeite ihre impliziten normativen Annahmen und Defizite. Aus ihnen leite ich die Notwendigkeit ab, sowohl die...

We study clean energy subsidies in a quantitative climate-economy model. Clean en-ergy subsidies decrease carbon emissions if and only if they lower the marginal product of dirty energy. The constrained-efficient subsidy equals the marginal external cost of dirty energy multiplied by the...