Species preservation and biodiversity value: a real options approach
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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Volume (Year): 48 (2004)
Issue (Month): 2 (September)
Pages: 857-879
| 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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