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The Cost of Ambiguity and Robustness in International Pollution Control

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  • Anastasios Xepapadeas

Abstract

This paper examines robustness in international pollution control emerg- ing from the regulator��s concerns regarding possible misspeci��cation of the natural system that is used to model pollution dynamics. Cooperative and noncooperative robust policy rules are determined along with the cost in terms of value loss of being robust relative to conventional policy rules.

Suggested Citation

  • Anastasios Xepapadeas, 2011. "The Cost of Ambiguity and Robustness in International Pollution Control," DEOS Working Papers 1101, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:1101
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    File URL: http://wpa.deos.aueb.gr/docs/Precaution_International_Pollution_Control_January_2011.pdf
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    References listed on IDEAS

    as
    1. Frederick Ploeg & Aart Zeeuw, 1992. "International aspects of pollution control," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(2), pages 117-139, March.
    2. Catarina Roseta-Palma & Anastasios Xepapadeas, 2004. "Robust Control in Water Management," Journal of Risk and Uncertainty, Springer, vol. 29(1), pages 21-34, July.
    3. Gollier, C. & Jullien, B. & Treich, N., 1997. "Learning and Irreversibility: An Econmic Interpretation of the "Precautionnary Principle"," Papers 97.470, Toulouse - GREMAQ.
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