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Optimal pollution control under imprecise environmental risk and irreversibility

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  • CHEVE, MORGANE
  • CONGAR, RONAN
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    Abstract

    This paper deals with a model of pollution accumulation in which a catastrophic environmental event occurs once the pollution stock exceeds some uncertain critical level. This problem is studied in a context of hard uncertainty since we consider that the available knowledge concerning the value taken by the critical pollution threshold contains both randomness and imprecision. Such a general form of knowledge is modelled as a (closed) random interval. This approach is mathematically tractable and amenable to numerical simulations. In this framework we investigate the effect of hard uncertainty on the optimal pollution/consumption trade-off and we compare the results with those obtained both in the certainty case and in the case of soft uncertainty (where only randomness prevails).

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    Bibliographic Info

    Article provided by Cambridge University Press in its journal Risk, Decision and Policy.

    Volume (Year): 5 (2000)
    Issue (Month): 02 (June)
    Pages: 151-164

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    Handle: RePEc:cup:rdepol:v:5:y:2000:i:02:p:151-164_00

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    Cited by:
    1. Anastasios Xepapadeas & Catarina Roseta-Palma, 2003. "Instabilities and Robust Control in Fisheries," Working Papers 2003.110, Fondazione Eni Enrico Mattei.

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