information about climate impacts, i.e., the resolution of at least some of the uncer-
tainty characterizing the benefits of climate change mitigation. As a result, they call for
a sequential process of taking action to mitigate emissions, then a process of learning
about the efficacy of the action, followed by an informed, revised action to further
mitigate climate change. Webster et al. (2008) show that the optimal amount of hedg-
ing depends on the extent of uncertainty and the degree to which the uncertainty can
be reduced. Pindyck (2000) finds that the greater the uncertainty over benefits and/or
costs, ...
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