The Cost of Ambiguity and Robustness in International Pollution Control

Anastasios Xepapadeas

in Climate Change and Common Sense

Published in print February 2012 | ISBN: 9780199692873
Published online May 2012 | e-ISBN: 9780191738371 | DOI:
The Cost of Ambiguity and Robustness in International Pollution Control

More Like This

Show all results sharing this subject:

  • Economic Development and Growth


Show Summary Details


Robust policy rules and precaution might be called for, under conditions of scientific uncertainty, when a policy maker is concerned about possible misspecification of the natural system that is used to model pollution dynamics. Precaution, however, could be costly. The present chapter develops a conceptual framework for designing robust policy rules and estimating the cost of being precautious in the context of an international pollution control problem. Cooperative and non-cooperative robust policy rules are determined and the cost, in terms of value loss, of being robust relative to conventional policy rules is estimated.

Keywords: ambiguity; robustness; precaution; differential games; open loop; feedback Nash equilibrium

Chapter.  8524 words.  Illustrated.

Subjects: Economic Development and Growth

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.