Preserving Biodiversity: Ambiguity and Safety Rules

Giannis Vardas () and Anastasios Xepapadeas

No 607, Working Papers from University of Crete, Department of Economics

Abstract: Safety rules are developed, for biodiversity preservation. These rules are designed to take into account the impact of uncertainty and worst case scenarios, which when combined with unregulated ecosystem management decisions, might produce extinction of species. The safety rules take the form of fixed land allocation and fixed harvesting rules under uncertainty. We explore how model uncertainty affects these safety rules relative to the classic risk aversion case and how a measure of precaution against worst case scenarios can be formulated.

Keywords: Biodiversity Preservation; Model Uncertainty; Safety Rules (search for similar items in EconPapers)
JEL-codes: Q57 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2006-03-11
New Economics Papers: this item is included in nep-agr, nep-env and nep-upt
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http://economics.soc.uoc.gr/wpa/docs/VaRLSTP.pdf First version, 2006 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:crt:wpaper:0607

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