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An incremental analysis of the value of expanding a wilderness area

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  • Jonathan Buttle
  • Daniel Rondeau

Abstract

Forsyth (2000) concludes from an option value analysis that when considered together, Killarney Provincial Park and two adjacent parcels of land should be preserved in an expanded park. With a simple discrete difference approach, we assess the incremental value of the adjacent land and decompose the benefits of park expansion. We identify a change in the value of the option to log the current park as a new component of value not previously reported. Applying the method to Killarney suggests that logging may be the most efficient use of the adjacent land. We also provide corrections for some of Forsyth's numerical results.

Suggested Citation

  • Jonathan Buttle & Daniel Rondeau, 2004. "An incremental analysis of the value of expanding a wilderness area," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 189-198, February.
    • Handle: RePEc:cje:issued:v:37:y:2004:i:1:p:189-198
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    1. Margaret Forsyth, 2000. "On estimating the option value of preserving a wilderness area," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(2), pages 413-434, May.
    2. Conrad, Jon M., 2000. "Wilderness: options to preserve, extract, or develop," Resource and Energy Economics, Elsevier, vol. 22(3), pages 205-219, July.
    3. Kimberly Rollins & Will Wistowsky & Michael Jay, 1997. "Wilderness Canoeing in Ontario: Using Cumulative Results to Update Dichotomous Choice Contingent Valuation Offer Amounts," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 45(2), pages 178-178, July.
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    Cited by:

    1. Sims, Charles & Finnoff, David, 2013. "When is a “wait and see” approach to invasive species justified?," Resource and Energy Economics, Elsevier, vol. 35(3), pages 235-255.
    2. Charles Sims & David Finnoff, 2016. "Opposing Irreversibilities and Tipping Point Uncertainty," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(4), pages 985-1022.

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    More about this item

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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