Description: The link between compound risk and ambiguity underlies some modern theories of decision making under ambiguity, and is crucial for the applications of those theories with prescriptive purposes. One such field for application is climate change economics. We investigate this link by conducting a large meta-analysis of the accumulated experimental evidence in the literature as well as collecting new experimental data from different subject pools, including a convenience sample of students and unconventional subject pools such as climate scientists, policy makers and actuaries.

Description: The win-win opportunities generated by energy conservation policies are largely neglected by individuals. Hitherto experimental evidence in environmental economics focuses on the role of preferences in risk, time and social contexts. Nevertheless, the role of higher order risk preferences, such as prudence and temperance, subjective beliefs and ambiguity attitudes, although known to be important determinants of insurance and precautionary savings in the literature of risk and uncertainty, have not received sufficient attention in empirical investigations of environmental decisions. This study aims to bridge the gap between the two literatures by conducting a large-scale experiment with a representative sample of French population.