Presented by: 
Michel de Lara (École des Ponts ParisTech and Université Paris-Est)
Date: 
Fri 29 Sep, 2:00 pm - 3:00 pm
Venue: 
45-204 (Mansergh Shaw)

Climate change and biodiversity loss are topics that challenge decision-making

Indeed, by their spatial globality, by their long time span and by the

risk they carry, we are compelled, when we compare policies, 

to aggregate within generations, over time and over uncertainties.

Economic analysis addresses risk and long-term issues with discounted 

expected utility (DEU), focusing on optimality. Viability theory is rooted 

in satisfying sustainability constraints over time, focusing on feasibility. 

Inspired by Stern's comments, we propose to give formal garbs to the 

"stewardship" notion that "particular aspects of the world are passed on in 

a state at least as good as that inherited from the previous generation". 

We present the Stochastic Stewardship Criterion and show that it shares,

with DEU, a time consistency property.