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The role of ambiguity in the evaluation of the net benefits of the MOSE system in the Venice lagoon

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  • Fontini, Fulvio
  • Umgiesser, Georg
  • Vergano, Lucia

Abstract

Several environmental problems are complicated by ambiguity. Sea-level rise following climate change is one relevant example. In this paper, we apply a decision-making approach specifically designed to deal with ambiguity in order to evaluate the net benefits of the mobile barriers system (MOSE), which aims to protect the Venice Lagoon from periodic flooding. We show that the estimated impacts crucially depend on the level of optimism and pessimism of the decision maker and substantially differ from those calculated on the basis of the expected value. We also calculate the implicit ambiguity attitude of the decision maker.

Suggested Citation

  • Fontini, Fulvio & Umgiesser, Georg & Vergano, Lucia, 2010. "The role of ambiguity in the evaluation of the net benefits of the MOSE system in the Venice lagoon," Ecological Economics, Elsevier, vol. 69(10), pages 1964-1972, August.
    • Handle: RePEc:eee:ecolec:v:69:y:2010:i:10:p:1964-1972
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    Cited by:

    1. Caporin, Massimiliano & Fontini, Fulvio, 2014. "The Value of Protecting Venice from the Acqua Alta Phenomenon under Different Local Sea Level Rises," MPRA Paper 53779, University Library of Munich, Germany.
    2. Francesco Angelini & Paolo Figini & Veronica Leoni, 2024. "High tide, low price? Flooding alerts and hotel prices in Venice," Tourism Economics, , vol. 30(4), pages 876-899, June.

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    More about this item

    Keywords

    Decision making under ambiguity NEO-capacity Venice MOSE Acqua alta;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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