The Precautionary Principle as a Robust Cost-Effectiveness Problem

This paper offers an interpretation of the precautionary principle in terms of a safety target that a decision-maker has to reach at a minimal cost in a robust way. A two-period model is used. The precautionary principle corresponds to a situation in which the decision-maker, facing an ex ante indecision, is not able to reach a safe target from the initial condition in a worst-case framework. However, he can efficiently succeed whenever the uncertainty at the second period is revealed to him. An example coping with the management of a renewable resource illustrates the general results of the paper.

Sustainable Groundwater Management in a Two-Cell Aquifer Model

Environmental Modeling & Assessment - The design of optimal water policies between farmers, municipalities, and groundwater-dependent ecosystems is analyzed in a hydro-economic model with...