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Planning Urban Water Investments with an Uncertain Climate
Author(s) -
Clarke Harry
Publication year - 2013
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/1759-3441.12055
Subject(s) - ignorance , portfolio , climate change , order (exchange) , stochastic programming , actuarial science , environmental planning , natural resource economics , business , economics , risk analysis (engineering) , environmental resource management , environmental science , finance , political science , mathematics , ecology , statistics , law , biology
Policies for assessing the effects of climate change risk and uncertainty on urban water provision are analysed with reference to Australia. The emphasis is on analytical insights derived from use of low‐order real option and stochastic dynamic programming models. Attention is also paid to insurance and portfolio approaches and to issues raised by uncertainty, gross ignorance and catastrophic risks.