ESP168a.f09.lecture6.10.07.10

ESP168a.f09.lecture6.10.07.10 - ESP 168a Environmental...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ESP 168a Environmental Policy Analysis Lecture 6: Defining Preferences Joan Ogden October 7, 2010 [email protected] Question: How should outcomes be valued? • Assume that you know what consequences flow from alternative actions. (You know the “possibility frontier”) • How do you value these consequences to make a choice among alternatives? • You must determine your “preference function” = formal description of decision-maker’s preferences • If there is one decision-maker, it’s relatively easy. With more than one stakeholder the process involves more complicated balancing of interests. Decision maker’s preferences: series of indifference curves 20 40 60 80 100 120 50 100 150 better Making the best choice from the possible alternatives and indifference curves 20 40 60 80 100 120 50 100 150 better Best choice A B C D E Making the best choice from the possible alternatives and indifference curves 20 40 60 80 100 120 50 100 150 better Best choice A B C D E Making the best choice from the possibility frontier and indifference curves 20 40 60 80 100 120 50 100 150 better possibility frontier Best choice Best choice when possibility frontier is tangent to indifference curve 20 40 60 80 100 120 50 100 150 possibility frontier Best choice Multi-attribute problems • If all the outcomes of a policy alternative can be expressed in terms of one attribute (like $), it is relatively straightforward to make a choice. • But this is rarely the case. • Usually actions impact a number of things, and outcomes of actions are described in terms of multiple attributes (cost, convenience, aesthetics) • Generally, no one action will win on all attributes • It’s hard to optimize in all directions at once! Steps in dealing with Multi-attribute problems Select attributes: • What objectives are we trying to address (Which attributes do we value?) • How does each policy choice effect the attributes? • The set of attributes should be comprehensive (there should be no gain or loss in well-being that could be accomplished via policy that is NOT covered in the attributes). Compare among choices based on valuation of attributes Selecting attributes • Important to the situation at hand (and the client) • Measurable, (not always possible) • Attributes should be open-ended, not too narrow (e.g. “air quality” not “number of power plant scrubber systems”; “reduction in crime” not “number of jail sentences”) Air Pollution in NYC: Objective, attributes, measurement of attributes Decrease adverse health effects Decrease adverse economic effects Decrease adverse psych. effects Improve well- being of NYC residents Decrease net costs of AP to city gov’t Achieve as desirable a political sol’n as possible Decrea se mortalit y Decrea se illness To low income residen ts To other residen ts Increase in ave....
View Full Document

This note was uploaded on 12/15/2010 for the course ESP ESP 168A taught by Professor Ogden during the Fall '10 term at UC Davis.

Page1 / 37

ESP168a.f09.lecture6.10.07.10 - ESP 168a Environmental...

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online