This book explores some of the complexities of decision-making under risk and uncertainty in environmental and natural resource economics. Risk and uncertainty are inherent problems for economists, and the authors in this volume offer numerous challenges and opportunities to improve the tools we use to assess these concepts.
They begin by studying various environmental issues such as climate change and biodiversity conservation to underline the importance of identifying different forms of uncertainty and irreversibility. They move on to consider the implications risk and uncertainty have on economic development and environmental policies, and study the attitudes of different user-groups to these issues. Finally, they examine the natural resource management dilemmas faced by the private sector including issues of optimal resource allocation, insurance problems and consumer behaviour.
Presenting cutting-edge research on the management of the environment under risk and uncertainty, this book will interest and inform academics and researchers in the fields of environmental and resource economics, and decision-makers in governmental and non-governmental agencies. It will also be of value to economists who want to understand the importance of analysing the impact of risk and uncertainty on environmental and economic processes.
Edited by Justus Wesseler, Assistant Professor of Environmental and Natural Resource Economics, Wageningen University, The Netherlands, Hans-Peter Weikard, Associate Professor of Environmental and Natural Resource Economics, Wageningen University, The Netherlands and Robert D. Weaver, Professor of Agricultural Economics, Pennsylvania State University, US
Contents: 1. Introduction: Approaches to Risk and Uncertainty in Environmental and Resource Economics Part I: Importance of Environmental Risk and Uncertainty 2. Irreversibilities and Catastrophic Risks in Climate Change 3. On the Quasi-Option Value of Biodiversity and Conservation 4. Optimal Environmental Development under Differing Stochastic Regimes Part II: Implications for Economic Development and Environmental Policies 5. Public-Private Environmental Conflicts 6. Fish Wars Revisited: A Stochastic Incomplete-Information Harvesting Game 7. Climate Change Scenarios and the Precautionary Principle 8. Risk, Pollution Abatement and Endogenous Growth: The Impact of Perception 9. Securitizing the Environment: A Property Rights Approach to Managing Climate Change 10. Risk Aversion in Economic Decision Making: Pragmatic Guides for Consistent Choice by Natural Resource Managers 11. Uncertainty Analysis in Integrated Assessment Models for Acidification Part III: Impact on Private Sector Response 12. Stochastic Dominance Portfolio Analysis of Forestry Assets 13. Weather-based Index Insurance to Hedge Temperature Exposure of Greenhouse Horticultural Firms 14. Parents' Valuation of Latent Health Risks to their Children 15. The Effect of Heavy Metal Content on Food Pricing Behaviour: Experimental Assessment Index