Why environmental and resource economists should care about non-expected utility models Academic Article

abstract

• Experimental and theoretical analysis has shown that the conventional expected utility (EU) and subjective expected utility (SEU) models, which are linear in probabilities, have serious limitations in certain situations. We argue here that these limitations are often highly relevant to the work that environmental and natural resource economists do. We discuss some of the experimental evidence and alternatives to the SEU. We consider the theory used, the problems studied, and the methods employed by resource economists. Finally, we highlight some recent work that has begun to use some of the alternatives to the EU and SEU frameworks and discuss areas where much future work is needed. 2007 Elsevier B.V. All rights reserved.

authors

• Shaw, Douglass
• Woodward, Richard

published proceedings

• RESOURCE AND ENERGY ECONOMICS

author list (cited authors)

• Shaw, W. D., & Woodward, R. T.

citation count

• 52

complete list of authors

• Shaw, W Douglass||Woodward, Richard T

publication date

• January 2008

publisher

• Elsevier  Publisher

published in

• Resource and Energy Economics  Journal

keywords

• Environmental Economics
• Expected Utility
• Risk
• Uncertainty

Digital Object Identifier (DOI)

• 10.1016/j.reseneeco.2007.05.001

start page

• 66

end page

• 89

volume

• 30

issue

• 1

URL

• http%3A%2F%2Fdx.doi.org%2F10.1016%2Fj.reseneeco.2007.05.001