Sunk costs and sunk benefits in environmental policy : I. basic theory
The standard framework in which economists evaluate environmental policies is cost-benefit analysis, so that policy debates usually focus on expected costs and benefits, or on the choice of discount rate. But this framework can be misleading when there is uncertainty over future outcomes, when there...
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| Format: | Working Paper |
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MIT Center for Energy and Environmental Policy Research
2009
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| Online Access: | http://hdl.handle.net/1721.1/50181 |