Vardas, Giannis and XEPAPADEAS, Anastasios
(2008):
*Model Uncertainty, Ambiguity and the Precautionary Principle: Implications for Biodiversity Management.*

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## Abstract

We analyze ecosystem management under `unmeasurable' Knightian uncertainty or ambiguity which, given the uncertainties characterizing ecosystems, might be a more appropriate framework relative to the classic risk case (measurable uncertainty). This approach is used as a formal way of modelling the precautionary principle in the context of least favorable priors and maxmin criteria. We provide biodiversity management rules which incorporate the precautionary principle. These rules take the form of either safety margins and minimum safety standards or optimal harvesting under precautionary approaches.

Item Type: | MPRA Paper |
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Original Title: | Model Uncertainty, Ambiguity and the Precautionary Principle: Implications for Biodiversity Management |

Language: | English |

Keywords: | Knightian uncertainty, ambiguity, risk, precautionary principle, biodiversity management, optimal harvesting, robust control |

Subjects: | D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q20 - General |

Item ID: | 10236 |

Depositing User: | Anastasios Xepapadeas |

Date Deposited: | 30 Aug 2008 09:35 |

Last Modified: | 07 Oct 2019 11:10 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/10236 |