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Species preservation and biodiversity value: a real options approach

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  • Kassar, Ilhem
  • Lasserre, Pierre

Abstract

We evaluate biodiversity in a real options framework, when the resources in use are substitutable. We examine optimal conservation decisions given that a biodiversity loss is irreversible and that future use values are uncertain. While species substitutability is generally believed to reduce the value of diversity, we show that the flexibility associated with substitutability is a source of value.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 48 (2004)
Issue (Month): 2 (September)
Pages: 857-879

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Handle: RePEc:eee:jeeman:v:48:y:2004:i:2:p:857-879

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Web page: http://www.elsevier.com/locate/inca/622870

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Citations

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Cited by:
  1. Ben Abdallah, Skander & Lasserre, Pierre, 2012. "A real option approach to the protection of a habitat dependent endangered species," Resource and Energy Economics, Elsevier, vol. 34(3), pages 295-318.
  2. Costello, Christopher & Ward, Michael, 2006. "Search, bioprospecting and biodiversity conservation," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 615-626, November.
  3. Luca Corato & Michele Moretto & Sergio Vergalli, 2013. "Land conversion pace under uncertainty and irreversibility: too fast or too slow?," Journal of Economics, Springer, vol. 110(1), pages 45-82, September.
  4. Trommetter, Michel, 2005. "Biodiversity and international stakes: A question of access," Ecological Economics, Elsevier, vol. 53(4), pages 573-583, June.
  5. Anastasios Michailidis & Konstadinos Mattas & Irene Tzouramani & Diamantis Karamouzis, 2009. "A Socioeconomic Valuation of an Irrigation System Project Based on Real Option Analysis Approach," Water Resources Management, Springer, vol. 23(10), pages 1989-2001, August.
  6. Sims, Charles & Finnoff, David, 2012. "The role of spatial scale in the timing of uncertain environmental policy," Journal of Economic Dynamics and Control, Elsevier, vol. 36(3), pages 369-382.
  7. Rupert Gatti & Timo Goeschl & Ben Groom & Timothy Swanson, 2011. "The Biodiversity Bargaining Problem," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(4), pages 609-628, April.
  8. Eppink, Florian V. & van den Bergh, Jeroen C.J.M., 2007. "Ecological theories and indicators in economic models of biodiversity loss and conservation: A critical review," Ecological Economics, Elsevier, vol. 61(2-3), pages 284-293, March.
  9. Lasserre, Pierre & Moatti, Jean-Paul & Soubeyran, Antoine, 2006. "Early initiation of highly active antiretroviral therapies for AIDS: Dynamic choice with endogenous and exogenous learning," Journal of Health Economics, Elsevier, vol. 25(3), pages 579-598, May.
  10. Béné, C. & Doyen, L., 2008. "Contribution values of biodiversity to ecosystem performances: A viability perspective," Ecological Economics, Elsevier, vol. 68(1-2), pages 14-23, December.
  11. Erwin, Patrick M. & López-Legentil, Susanna & Schuhmann, Peter W., 2010. "The pharmaceutical value of marine biodiversity for anti-cancer drug discovery," Ecological Economics, Elsevier, vol. 70(2), pages 445-451, December.
  12. de, Vries Frans & Ellis, Ciaran & Goulson, Dave & Hanley, Nicholas & Kleczkowski, Adam, 2013. "Ecological-economic modelling of interactions between wild and commercial bees and pesticide use," Stirling Economics Discussion Papers 2013-10, University of Stirling, Division of Economics.
  13. Joubert, J.W. & Luhandjula, M.K. & Ncube, O. & le Roux, G. & de Wet, F., 2007. "An optimization model for the management of a South African game ranch," Agricultural Systems, Elsevier, vol. 92(1-3), pages 223-239, January.
  14. Song, Feng & Zhao, Jinhua & Swinton, Scott M., 2009. "Switching to Perennial Energy Crops under Uncertainty and Costly Reversibility," Staff Papers 56195, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  15. Marcoul, Philippe & Weninger, Quinn, 2008. "Search and active learning with correlated information: Empirical evidence from mid-Atlantic clam fishermen," Journal of Economic Dynamics and Control, Elsevier, vol. 32(6), pages 1921-1948, June.
  16. Sarr, Mare & Goeschl, Timo & Swanson, Tim, 2008. "The value of conserving genetic resources for R&D: A survey," Ecological Economics, Elsevier, vol. 67(2), pages 184-193, September.
  17. Leroux, Anke D. & Martin, Vance L. & Goeschl, Timo, 2009. "Optimal conservation, extinction debt, and the augmented quasi-option value," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 43-57, July.

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