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Unformatted text preview: nt Product tracing will reduce cost of safety maintenance. maintenance. Labeling will benefit industry in the long Labeling run.Enable product differntiation run.Enable Should be done privately subject to government Should monitoring monitoring Risks Risks Risk Containment Approach for Policymaking Risk Containment Approach for Policymaking Risk = Probability of a bad event occurring during a period of time. risk management to design policies to 1)maximize risk reduction within a given constraint on social costs. Or 2)maximize social welfare subject to risk constraints Risk containment can be practiced locally&globally Precaution in technology development Precaution is not avoiding risks. It means containing risks in an adaptive process of continuous learning.. There are gaping holes in scientific knowledge, but it is the best we have. Progress requires gradual expansion of capacity containing risks as we venture to new territories. Even risk averse individuals take risk take There are many risk management There
strategies including: strategies Diversification Insurance experimentation Not taking risks id risky Multiplicity Of Risks Multiplicity Individual risks can not evaluated in isolation. Individual
There are trade-offs in risk taking The...
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- Spring '09
- Environmental Economics