Species Preservation and Biodiversity Value: A Real Options Approach

Ilhem Kassar and Pierre Lasserre
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Ilhem Kassar: CIRANO

No 20-18, Cahiers de recherche du Département des sciences économiques, UQAM from Université du Québec à Montréal, Département des sciences économiques

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.

Keywords: Real options; option value; biodiversity; biological portfolio; substitutability; species; assets; marginal value (search for similar items in EconPapers)
JEL-codes: D46 D81 D99 Q20 (search for similar items in EconPapers)
Pages: 29
Date: 2002-09
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Related works:
Journal Article: Species preservation and biodiversity value: a real options approach (2004)
Working Paper: Species Preservation and Biodiversity Value: A Real Options Approach (2002)
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