Ambiguity-averse environmental assessment with discontinuous value functions.

We formulate an ambiguity-averse stochastic replenishment model for non-smooth environmental degrading dynamics subject to jump ambiguity; the observation intensity is disturbed by the opponent called Nature. The value function as the worst-case disutility is suggested to be a discontinuous function solving a non-linear and non-local Bellman equation. We suggest importance of analyzing environmental engineering problems both mathematically and numerically. [ABSTRACT FROM AUTHOR]