Weitzman’s Dismal Theorem (Weitzman 2009) challenged the economic analysis of climate policy: The uncertainty about the impact of climate change would be so large that expected utility maximisation is either undefined or arbitrary
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چکیده
Weitzman’s Dismal Theorem (Weitzman 2009) challenged the economic analysis of climate policy: The uncertainty about the impact of climate change would be so large that expected utility maximisation is either undefined or arbitrary. Unfortunately, Weitzman’s is an impossibility theorem: It shows what cannot be done. It does not show what could or should be done instead. This paper attempts to provide an alternative.
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