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Learning and Irreversibility: An Econmic Interpretation of the "Precautionnary Principle"

Author

Listed:
  • Gollier, C.
  • Jullien, B.
  • Treich, N.

Abstract

We consider the problem of the optimal use of a good whose consumption can produce damages in the future. Potential damages are proportional to the accumulated lifetimeconsumption of the good. Scientific progress is made over time that provides information on the distribution of the intensity of potential damages.

Suggested Citation

  • Gollier, C. & Jullien, B. & Treich, N., 1997. "Learning and Irreversibility: An Econmic Interpretation of the "Precautionnary Principle"," Papers 97.470, Toulouse - GREMAQ.
  • Handle: RePEc:fth:gremaq:97.470
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Anastasios Xepapadeas, "undated". "The Cost of Ambiguity and Robustness in International Pollution Control," DEOS Working Papers 1101, Athens University of Economics and Business.
    2. Pierre-André Jouvet, 1998. "Voluntary Contributions with Uncertainty: The Environmental Quality," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 23(2), pages 151-165, December.

    More about this item

    Keywords

    RISK ; SAVINGS ; ENVIRONMENT;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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