The role of risk aversion and lay risk in the probabilistic externality assessment for oil tanker routes to europe

Andrea Bigano, Mariaester Cassinelli, Anil Markandya, Fabio Sferra

Research output: Contribution to journalArticle

Abstract

Oil spills are a major cause of environmental concern, in particular for Europe. We extend the traditional approach of assessing the welfare losses for individuals potentially affected by an oil spill, by taking into full account the implications of the probabilistic nature of the related externalities. Our approach differs from the traditional one in three respects: it allows for risk aversion; it adopts an ex-ante rather than an ex-post perspective; it allows for subjective oil-spill probabilities (held by the lay public) more than for expert-assessed probabilities. We illustrate this methodology with a case study on the Aegean Sea.
LanguageEnglish
Pages93-118
Number of pages26
JournalJournal of Transport Economics and Policy
Volume44
Issue number1
StatusPublished - Jan 2010

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Oil tankers
Oil spills
oil spill
welfare
expert
cause
methodology
oil tanker
Europe
externality
Risk aversion
Oil
Externalities
Oil spill

Keywords

  • Air Pollution
  • Water Pollution
  • Hazardous Waste
  • Noise
  • Recycling
  • Valuation of Environmental Effects
  • Solid Waste

Cite this

The role of risk aversion and lay risk in the probabilistic externality assessment for oil tanker routes to europe. / Bigano, Andrea; Cassinelli, Mariaester; Markandya, Anil; Sferra, Fabio.

In: Journal of Transport Economics and Policy, Vol. 44, No. 1, 01.2010, p. 93-118.

Research output: Contribution to journalArticle

Bigano, Andrea ; Cassinelli, Mariaester ; Markandya, Anil ; Sferra, Fabio. / The role of risk aversion and lay risk in the probabilistic externality assessment for oil tanker routes to europe. In: Journal of Transport Economics and Policy. 2010 ; Vol. 44, No. 1. pp. 93-118
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