Public Economics Lectures Part 1: Introduction

Weitzman: Uncertainty about Benefits
Now suppose that there is uncertainty about the marginal benefits of
reducing pollution but that the costs are known.
Price and quantity policies are again equivalent.
For a given p, the government knows the Q that will result exactly
since p = C ′ (Q).
More generally, uncertainty matters only when it is about the
cost/benefit schedule for the agent who chooses level of pollution
reduction.
If consumer chooses level of pollution reduction, then only uncertainty
about marginal benefits matters
Public Economics Lectures () Part 7: Public Goods and Externalities 106 / 138