A0900
Title: The value of information (VOI) in controlled dynamical environmental models with tipping points
Authors: Michael Kuhn - International Institute for Applied Systems Analysis (Austria)
Thorsten Upmann - (Germany)
Stefan Wrzaczek - International Institute for Applied Systems Analysis (IIASA) (Austria) [presenting]
Abstract: The concept of the VOI is applied and extended to a classical renewable resource problem of environmental economics, where the uncertainty corresponds to the hazard rate. The concept is extended and is shown that the optimal solution is of singular solution type, which is followed according to the most rapid approach path (MRAP). For the case of an exogenous hazard rate, it is possible to derive an analytic solution, for the endogenous case, numerical methods have to be applied. The concept is demonstrated by numerical calculations of both cases and different distribution functions for unknown parameters.
