Individual option prices for climate change mitigation
AbstractWillingness to pay for climate change mitigation depends on people's perceptions about just how bad things will get if nothing is done. Individual subjective distributions for future climate conditions are combined with stated preference discrete choice data over alternative climate policies to estimate individual option prices (the appropriate ex ante welfare measure in the face of uncertainty) for climate change mitigation. We find significant scope effects in the estimated option prices according to both expected conditions and degree of uncertainty.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 89 (2005)
Issue (Month): 2-3 (February)
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Web page: http://www.elsevier.com/locate/inca/505578
Other versions of this item:
- Trudy Ann Cameron, 2002. "Individual Option Prices for Climate Change Mitigation," University of Oregon Economics Department Working Papers 2003-9, University of Oregon Economics Department, revised 20 Jul 2002.
- H0 - Public Economics - - General
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
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