search query: @indexterm welfare / total: 396
reference: 88 / 396
| Author: | Tsur, Y. Zemel, A. |
| Title: | Welfare measurement under threats of environmental catastrophes |
| Journal: | Journal of Environmental Economics and Management
2006 : 52:1, p. 421-429 |
| Index terms: | environmental damage measurement welfare |
| Language: | eng |
| Abstract: | This paper examines welfare measures under threats of environmental catastrophes by using the "parable" apparatus of Weitzman and Löfgren. It is shown that the occurrence probability of the catastrophic events is driven by anthropogenic activities such as natural resource exploitation. Without external effects, the green NNP is a genuine welfare measure in terms of a particular parable economy. However, the occurrence hazard constitutes a public bad, treated as an externality by agents who ignore their own contribution to its accumulation. In such cases the green NNP fails to properly internalize future effects on the hazerd rate of current economic activities and as a result overestimates welfare. |
SCIMA