Pollution control with uncertain stock dynamics: When, and how, to be precautious

The precautionary principle(PP) applied to environmental policy stipulates that,in the presence of un certainty,society must take robust preventive action to guard against worst case outcomes.It follows that the higher the degree of uncertainty,the more aggressive this preventive action should be.This normative maxim is explored in the case of a stylized dynamic model of pollution control with uncertain(in the Knightian sense)stock dynamics,using the robust control framework…

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