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Evaluating Environmental Risks Using Safety‐First Constraints
Author(s) -
Qiu Zeyuan,
Prato Tony,
McCamley Francis
Publication year - 2001
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/0002-9092.00165
Subject(s) - context (archaeology) , decision maker , variable (mathematics) , linear programming , computer science , random variable , sample (material) , space (punctuation) , moment (physics) , probability distribution , mathematical optimization , operations research , econometrics , mathematics , statistics , mathematical analysis , paleontology , chemistry , chromatography , biology , physics , classical mechanics , operating system
This article incorporates an upper partial moment concept into a linear programming model to impose safety‐first environmental constraints. The model is linear and deterministic, treats a discrete sample as an empirical distribution, and optimizes over the column space. It allows a decision maker to specify the objectives and the compliance probabilities with the objectives when making decisions, and endogenously determines the risk levels. Even though it is presented in the context of environmental management, the model is general enough to be extended to other situations where the probability of a variable exceeding some target or standard is restricted.