Is risk-neutrality an appropriate assumption for benefitcost analysis? Why or why not? Does it seem more appropriate
Question:
Is risk-neutrality an appropriate assumption for benefit–cost analysis? Why or why not? Does it seem more appropriate for some environmental problems than others? If so, which ones? If you were evaluating the desirability of locating a hazardous waste incinerator in a particular town, would the Arrow-Lind rationale for risk-neutrality be appropriate? Why or why not?
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Riskneutrality which assumes that an individual is indifferent to risk is not always an appropriate assumption for benefitcost analysis The appropriat...View the full answer
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Related Book For 
Environmental And Natural Resources Economics
ISBN: 9780131392571
9th Edition
Authors: Tom Tietenberg
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