Risky business: climate control legislation, regional development uncertainties and California's SB 375 law

摘要

Climate control legislation introduces additional layers of uncertainty into the decision environment of entrepreneurs and governments alike. This paper explores the nature of these regulatory uncertainties and their implications for decision making in the context of a recent California law. It argues that climate-oriented legislation anywhere may have similar uncertainty-amplifying effects for many kinds of entrepreneurial decisions. It then examines the promise of two methodologies developed by the RAND Corporation: Assumption-Based Planning (ABP) and Robust Adaptive Planning (RAP), which could help hedge the risks of decision making in very uncertain regulatory environments.