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 InfoPaper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number 2003-9.
Date of creation: 20 Jul 2002
Date of revision: 20 Jul 2002
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option prices; climate change; stated preferences; contingent valuation; state-dependent preferences;
Other versions of this item:
- Cameron, Trudy Ann, 2005. "Individual option prices for climate change mitigation," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 283-301, February.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-03-25 (All new papers)
- NEP-DCM-2003-03-25 (Discrete Choice Models)
- NEP-ENE-2003-03-25 (Energy Economics)
- NEP-MIC-2003-03-25 (Microeconomics)
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