An equilibrium model of habitat conservation under uncertainty and irreversibility

Arbeitspapier

In this paper stochastic dynamic programming is used to investigate habitat conservation by a multitude of landholders under uncertainty about the value of environmental services and irreversible development. We study land conversion under competition on the market for agricultural products when voluntary and mandatory measures are combined by the Government to induce adequate participation in a conservation plan. We analytically determine the impact of uncertainty and optimal policy conversion dynamics and discuss different policy scenarios on the basis of the relative long-run expected rate of deforestation. Finally, some numerical simulations are provided to illustrate our findings.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Nota di Lavoro ; No. 160.2010

Classification and Topics

• Classification: Wirtschaft ; Optimization Techniques; Programming Models; Dynamic Analysis ; Criteria for Decision-Making under Risk and Uncertainty ; Renewable Resources and Conservation: Land ; Environmental Economics: Government Policy
• Subject: Optimal Stopping ; Deforestation ; Payments For Environmental Services ; Natural

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Di Corato, Luca ; Moretto, Michele ; Vergalli, Sergio
• Event: Veröffentlichung
• (who): Fondazione Eni Enrico Mattei (FEEM)
• (where): Milano
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/53198
• Last update: 10.03.2025, 11:45 AM CET