2010
DOI: 10.1093/oxrep/grq005 View full text |Buy / Rent full text
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Abstract: There is an increasing demand for putting a shadow price on the environment to guide public policy and incentivise private behaviour. In practice, setting that price can be extremely difficult as uncertainties abound. There is often uncertainty not just about individual parameters but about the structure of the problem and how to model it. A further complication is the second-best nature of real environmental policy making. In this paper, we propose some practical steps for setting prices in the face of these … Show more

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