The economic value of biodiversity

Elettra Agliardi; Rossella Agliardi; Willem Spanjers

The economic value of biodiversity

Elettra Agliardi, Rossella Agliardi, Willem Spanjers

Research output: Contribution to conference › Paper › peer-review

Abstract

We study the decision to preserve diverse species when the value of biodiversity is uncertain, or even affected by ambiguity. The optimal decision is adopted based on a real option framework. The major findings are that while calculated risk creates a scope for biodiversity preservation, the presence of ambiguity reduces it, thus accelerating the extinction of species with lower value.

Original language	English
Publication status	Published - 30 Jun 2022
Event	EAERE 2022, 27th Annual Conference of the European Association of Environmental and Resource Economists - Rimini, Italy Duration: 30 Jun 2022 → …

Conference

Conference	EAERE 2022, 27th Annual Conference of the European Association of Environmental and Resource Economists
Period	30/06/22 → …

Bibliographical note

Organising Body: European Association of Environmental and Resource Economists

Keywords

Economics and econometrics
ambiguity aversion
biodiversity preservation
biodiversity valuation
endangered species
switching option

Cite this

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abstract = "We study the decision to preserve diverse species when the value of biodiversity is uncertain, or even affected by ambiguity. The optimal decision is adopted based on a real option framework. The major findings are that while calculated risk creates a scope for biodiversity preservation, the presence of ambiguity reduces it, thus accelerating the extinction of species with lower value.",

keywords = "Economics and econometrics, ambiguity aversion, biodiversity preservation, biodiversity valuation, endangered species, switching option",

author = "Elettra Agliardi and Rossella Agliardi and Willem Spanjers",

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T1 - The economic value of biodiversity

AU - Agliardi, Elettra

AU - Agliardi, Rossella

AU - Spanjers, Willem

N1 - Organising Body: European Association of Environmental and Resource Economists

PY - 2022/6/30

Y1 - 2022/6/30

N2 - We study the decision to preserve diverse species when the value of biodiversity is uncertain, or even affected by ambiguity. The optimal decision is adopted based on a real option framework. The major findings are that while calculated risk creates a scope for biodiversity preservation, the presence of ambiguity reduces it, thus accelerating the extinction of species with lower value.

AB - We study the decision to preserve diverse species when the value of biodiversity is uncertain, or even affected by ambiguity. The optimal decision is adopted based on a real option framework. The major findings are that while calculated risk creates a scope for biodiversity preservation, the presence of ambiguity reduces it, thus accelerating the extinction of species with lower value.

KW - Economics and econometrics

KW - ambiguity aversion

KW - biodiversity preservation

KW - biodiversity valuation

KW - endangered species

KW - switching option

M3 - Paper

T2 - EAERE 2022, 27th Annual Conference of the European Association of Environmental and Resource Economists

Y2 - 30 June 2022

ER -

The economic value of biodiversity

Abstract

Conference

Bibliographical note

Keywords

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Cite this