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Irreversibilities and the timing of environmental policy

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dc.contributor.author Pindyck, Robert S. en_US
dc.contributor.other Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research. en_US
dc.date.accessioned 2009-04-03T17:08:29Z
dc.date.available 2009-04-03T17:08:29Z
dc.date.issued 1999 en_US
dc.identifier 99005 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/45091
dc.description.abstract The Standard framework in which economists evaluate environmental policies is cost-benefit analysis, so policy debates usually focus on the expected flows of costs and benefits, or on the choice of discount rate. But this can be misleading when there is uncertainty over future outcomes, when there are irreversibilities, and when policy adoption can be delayed. This paper shows how two kinds of uncertainty - over the future costs and benefits of reduction environmental degradation, and over the evolution of an ecosystem - interact with two kinds of irreversibilities - sunk costs associated with an environmental regulation, and "sunk benefits" of avoided environmental degradation - to affect optimal policy timing and design. en_US
dc.description.sponsorship Supported by the MIT Center for Energy and Environmental Policy Research, the M.I.T. Program on Global Climate Change and the National Science Foundation. en_US
dc.format.extent 31 p en_US
dc.publisher MIT Center for Energy and Environmental Policy Research en_US
dc.relation.ispartofseries MIT-CEEPR (Series) ; 99-005WP. en_US
dc.title Irreversibilities and the timing of environmental policy en_US
dc.type Working Paper en_US
dc.identifier.oclc 42077093 en_US


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