Abstract
It is becoming more and more evident that uncertainty related to future demand and supply of natural environments is one of the key issues in social benefit—cost analysis of these resources. Many environmental problems that our societies face are such by nature that we simply do not know the consequences of our contemporary actions for certain. Take for example the greenhouse effect — both climate and economic changes are highly uncertain. In environmental economics uncertainty has for long been one of the central themes.
I am grateful to the participants of the ESF task force on valuation, risk and uncertainty for their valuable comments. Comments by an anonymous referee have also been very helpful.
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Svento, R. (1994). Welfare Measurement under Uncertainty. In: Pethig, R. (eds) Valuing the Environment: Methodological and Measurement Issues. Environment, Science and Society, vol 2. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-8317-6_5
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DOI: https://doi.org/10.1007/978-94-015-8317-6_5
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