Downside versus Symmetric Measures of Uncertainty in Natural Resource Portfolio Design to Manage Climate Change Uncertainty

Payal Shah and Amy Ando

Land Economics, 2015, vol. 91, issue 4, 664-687

Abstract: Recent work uses Markowitz’s mean-variance framework to identify efficient allocations of conservation activity across subregions of a planning landscape to minimize climate change–induced uncertainty in future conservation benefits. We replace variance with a downside measure of uncertainty and compare the resulting portfolios of conservation activity and uncertainty–expected value results against those generated by the mean-variance approach. Results illustrate that conservation agents can manage climate changed–induced uncertainty in future conservation outcomes more efficiently using our framework when they are particularly averse to downside uncertainty and when predicted future conservation outcomes within subregions across their planning horizon exhibit skewed distributions.

JEL-codes: D81 Q57 (search for similar items in EconPapers)
Date: 2015
Note: DOI: 10.3368/le.91.4.664
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://le.uwpress.org/cgi/reprint/91/4/664
A subscription is required to access pdf files. Pay per article is available.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:91:y:2015:i:4:p:664-687

Access Statistics for this article

More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().