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Individual option prices for climate change mitigation

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  • Cameron, Trudy Ann

Abstract

Willingness 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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  • Cameron, Trudy Ann, 2005. "Individual option prices for climate change mitigation," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 283-301, February.
    • Handle: RePEc:eee:pubeco:v:89:y:2005:i:2-3:p:283-301
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    More about this item

    JEL classification:

    • 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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