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dc.contributor.authorBuchholz, Wolfgangen_US
dc.contributor.authorSchymura, Michaelen_US
dc.date.accessioned2010-09-17en_US
dc.date.accessioned2010-09-22T10:07:04Z-
dc.date.available2010-09-22T10:07:04Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/40165-
dc.description.abstractExpected Utility theory is not only applied to individual choices but also to ethical decisions, e.g. in cost-benefit analysis of climate change policy measures that affect future generations. In this context the crucial question arises whether EU theory is able to deal with 'catastrophic risks', i.e. risks of high, but very unlikely losses, in an ethically appealing way. In this paper we show that this is not the case. Rather, if in the framework of EU theory a plausible level of risk aversion is assumed, a 'tyranny of catastrophic risk' (TCR) emerges, i.e. project evaluation may be dominated by the catastrophic event even if its probability is negligibly small. With low degrees of risk aversion, however the catastrophic risk eventually has no impact at all when its probability goes to zero which is ethically not acceptable as well.en_US
dc.language.isoengen_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheimen_US
dc.relation.ispartofseriesZEW Discussion Papers 10-059en_US
dc.subject.jelQ54en_US
dc.subject.ddc330en_US
dc.subject.keywordutilitarianismen_US
dc.subject.keywordExpected Utility theoryen_US
dc.subject.keywordcatastrophic risksen_US
dc.subject.stwKlimaschutzen_US
dc.subject.stwKosten-Nutzen-Analyseen_US
dc.subject.stwErwartungsnutzenen_US
dc.subject.stwNaturkatastropheen_US
dc.subject.stwRisikoen_US
dc.subject.stwWahrscheinlichkeitsrechnungen_US
dc.subject.stwUtilitarismusen_US
dc.subject.stwTheorieen_US
dc.titleExpected Utility theory and the tyranny of catastrophic risksen_US
dc.typeWorking Paperen_US
dc.identifier.ppn635312646en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zewdip:10059-
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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