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Bayesian Environmental Policy Decisions: Two Case Studies
Author(s) -
Wolfson Lara J.,
Kadane Joseph B.,
Small Mitchell J.
Publication year - 1996
Publication title -
ecological applications
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.864
H-Index - 213
eISSN - 1939-5582
pISSN - 1051-0761
DOI - 10.2307/2269590
Subject(s) - bayesian probability , computer science , management science , decision theory , environmental policy , bayesian inference , risk analysis (engineering) , ecology , operations research , environmental resource management , artificial intelligence , economics , business , mathematics , statistics , biology
Statistical decision theory can be a valuable tool for policy‐making decisions. In particular, environmental problems often benefit from the application of Bayesian and decision‐theoretic techniques that address the uncertain nature of problems in the environmental and ecological sciences. This paper discusses aspects of implementing statistical decision‐making tools in situations where uncertainty is present, looking at issues such as elicitation of prior distributions, covariate allocation, formulation of loss functions, and minimization of expected losses subject to cooperation constraints. These ideas are illustrated through two case studies in environmental remediation.