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Species preservation and biodiversity value: a real options approach

  • Kassar, Ilhem
  • Lasserre, Pierre

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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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
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622870

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  18. Rausser, Gordon C. & Small, Arthur A., 2000. "Valuing Research Leads: Bioprospecting and the Conservation of Genetic Resources," Berkeley Olin Program in Law & Economics, Working Paper Series qt4t56m5b8, Berkeley Olin Program in Law & Economics.
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